Consensys has announced its acquisition of Wallet Guard, a browser extension focused on protecting digital assets from theft and fraud. This move aims to integrate Wallet Guard’s security features into Metamask. Metamask to Boost Security Following Consensys’ Wallet Guard Acquisition The acquisition comes as the Web3 ecosystem faces persistent security challenges, with scams and hacks […]
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SEC Serves Fresh Lawsuit To Metamask Developer Consensys – What’s The Problem This Time?
The US Securities and Exchange Commission (SEC) has instituted a lawsuit against Metamask developer, Consensys. The Commission alleges that the crypto firm violated securities laws by acting as an unregistered securities broker.
SEC Accuses Consensys Of Violating Securities Laws Using Metamask
According to the court document, the SEC claims that Consensys has acted “as an unregistered broker of crypto asset securities through its MetaMask Swaps service” since October 2020. The Commission also accused the crypto firm of engaging in the unregistered offer and sale of securities through crypto staking programs.
The SEC stated that Consensys has brokered over 36 million crypto transactions since 2020 through its MetaMask Swaps, at least 5 million involving crypto asset securities. Metamask is known as one of the most widely used crypto wallets. In addition to storing their crypto assets on the application, users can buy and sell cryptocurrencies by swapping one crypto asset for the other.
This ‘Swap’ service forms the focal point of the SEC’s enforcement action. The SEC claims that some of these crypto assets are securities, and by enabling users to swap these securities, Consensys acted as an unregistered securities broker, thereby violating securities laws in the process.
The SEC went further to list Polygon (MATIC), Decentraland (MANA), Chiliz (CHZ), The Sandbox (SAND), and Luna (LUNA) as the crypto securities that were made available for trading on Metamask’s swap platform.
Additionally, the SEC accused Consensys of performing a “traditional function of the securities market” by offering and selling securities for Lido and Rocket Pool. The Commission claimed that the staking programs offered by Lido and Rocket Poo are investment contracts and that Consensys was in the wrong by offering these securities through unregistered transactions on its ‘MetaMask Staking’ platform.
The Genesis Of The Legal Battle Between SEC And Consensys
Interestingly, the SEC’s lawsuit against Consensys comes just months after the crypto firm filed a lawsuit against the Commission, accusing the SEC of an “unlawful seizure of authority.” Consensys sought Judicial relief against a potential action from the SEC. They also asked the court to declare that Ethereum wasn’t a security and that the SEC had no jurisdiction over crypto-related matters.
The crypto firm looked to have won that battle, considering that the SEC dropped its investigation into Ethereum’s status as a security. However, in the letters informing Consensys about the Commission’s decision to drop its investigation into Ethereum, the SEC had warned the crypto firm that they could bring enforcement actions against them relating to other issues, which they have now done.
Reacting to the SEC’s lawsuit, Consensys stated that it would “vigorously pursue” the lawsuit it had initially filed against the SEC. The crypto firm also remarked that they had fully expected” the SEC to follow through with its threat of claiming that MetaMask had to be registered as a securities broker.
Featured image from CNBC, chart from TradingView
Consensys to Challenge SEC in Court: Confident SEC Lacks Authority to Regulate Software Interfaces Like Metamask
Consensys Software has issued a statement addressing U.S. Securities and Exchange Commission (SEC) charges accusing the company of unregistered securities offerings through Metamask staking and swaps. Consensys contends the SEC’s actions are regulatory overreach and vows to defend its position in court, emphasizing the broader implications for the web3 ecosystem. Consensys Challenges SEC Charges On […]
Bitcoin News
SEC Charges Consensys With Violating Federal Securities Laws
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Consensys Software Inc., accusing the blockchain firm of violating federal securities laws by failing to register as a broker and engaging in unregistered securities offerings. The SEC’s complaint highlights Consensys’s operations through its Metamask Swaps and Metamask Staking services. Consensys Faces SEC Lawsuit […]
Bitcoin News
Consensys Hails Spot Ether ETF Approval, Slams SEC’s ‘Deliberate Regulatory Abuse’
Consensys has lauded the U.S. Securities and Exchange Commission’s approval of 19b-4 filings for spot ether exchange-traded funds as “a step in the right direction.” However, the software firm expressed its disapproval of what it calls the securities regulator’s “deliberate regulatory abuse” in its handling of ethereum. The SEC’s Inconsistent Approach to Digital Assets The […]
Bitcoin News
‘ETH Should Not Be Treated as a Security’ — Consensys Sues SEC Over Ethereum Regulations
In a significant legal move, Consensys has initiated a lawsuit against the U.S. Securities and Exchange Commission (SEC) to protect the Ethereum blockchain from what it deems overreaching regulations. A report further alleges that the SEC issued a Wells Notice to Consensys, asserting that Metamask functions as an “unlicensed broker-dealer.” Consensys Confronts SEC Following Receipt […]
Bitcoin News
Consensys to SEC: Recognize the Advanced Safeguards Inherent in Ethereum’s Design
Consensys has told the U.S. Securities and Exchange Commission that Ethereum’s proof of stake implementation “meets and even exceeds the security of Bitcoin’s Proof of Work (PoW).” The blockchain software company said the commission should recognize the advanced safeguards inherent in Ethereum’s design which exceed the “security and resilience safeguards underlying bitcoin-based exchange-traded products.” The […]
Bitcoin News
Ethereum Co-Founder, Consensys Sued By Early Employees Over Alleged Equity Promises
More than two dozen early employees of the blockchain software company Consensys have filed a lawsuit against Ethereum co-founder Joseph Lubin, Consensys, and other parties. The plaintiffs allege Lubin broke contractual promises related to equity compensation made when the employees joined the company in its formative years starting in 2014.
Ethereum Co-Founder Joseph Lubin Faces U.S. Lawsuit
The lawsuit filed in New York comes as Consensys, now valued at over billion, has evolved from its early experimental structure to a more traditional centralized company. The lawsuit was filed on October 19, 2023, in New York state court by 27 former Consensys employees.
The court filing names Joseph Lubin, Consensys, and JPMorgan Chase as defendants. The plaintiffs claim Lubin induced them to join Consensys in its early days with offers of equity in the parent “hub” company Consensys AG.
The former staff members allege Lubin promised this equity would not be diluted. However, in 2020 Consensys restructured, reportedly moving key assets to a new Delaware entity Consensys Software Inc. (CSI). The plaintiffs claim they were largely excluded from the restructuring, leaving their shares in the original Consensys AG far less valuable.
“Lubin made a similar offer to each plaintiff in connection with his or her joining Consensys; plaintiffs accepted the deal, and an agreement was formed,” the lawsuit details.
Lubin allegedly broke a deal that early employees would “win or lose – together – alongside Lubin and Consensys.” The suit claims “Finance took precedence over founding employees.” It seeks damages for breach of contract and fiduciary duties.
It’s not the first instance where Consensys and Lubin have faced such allegations. On March 1, 2022, a collective of thirty-five ex-staffers, accounting for over half of all recognized Consensys AG (CAG) stakeholders, lodged a petition for a distinctive review in line with article 697a and following sections of the Swiss Code of Obligations. The intent? To delve deep into significant discrepancies within CAG.
A spokesperson for Lubin and Consensys fervently refuted the allegations, describing them as “frivolous” in an email sent to Bloomberg. “After two years of getting nowhere with their frivolous claims against Consensys Mesh in a Swiss court, plaintiffs now believe their merit-less claims stand a better chance of yielding a pay day if they game U.S. courts and entangle Consensys Software and other unrelated parties in litigation,” the spokesperson stressed.
What do you think about the lawsuit against Lubin and Consensys? Share your thoughts and opinions about this subject in the comments section below.
Visa Teams Up With Consensys To Build Payment Infrastructure For CBDCs
Visa and ConsenSys, a blockchain software startup, are working to develop a central bank digital currency (CBDC) pilot program to explore retail applications such as cards and wallets.
Both firms will first meet with an estimated 30 central banks to discuss the goals that governments hope to achieve with government-backed digital currency. The pilot program is scheduled to begin in the spring of this year.
Visa To Pilot CBDC In Select Countries
Visa (V) announced on Thursday that it will take its crypto services to the next level by teaming with blockchain software company Consensys to create a central bank digital currency onramp (CBDC).
The payments giant plans to launch a “CBDC sandbox” in the spring, where central banks can try out the technology after minting it on Consensys’ Quorum network.
Visa Trades At 4. Source: TradingView
Customers will be able to use their CBDC-linked Visa card or digital wallet anyplace Visa is accepted globally, according to Catherine Gu, Visa’s head of CBDC, who spoke with ConsenSys in a blog post Q&A.
Gu Said:
“If successful, CBDC could expand access to financial services and make government disbursements more efficient, targeted and secure – that’s an attractive proposition for policy makers.”
A CBDC is a type of central bank obligation that is issued in digital form and can be used by the general public, comparable to the US dollar.
Related article | Visa Survey Shows Crypto Payments Could Boom In 2022
Countries Are Launching CBDCs
The decision comes as regulators around the world struggle to figure out how to treat CBDCs in a changing financial landscape dominated by cryptocurrencies. The notion that crypto and digital money will upend financial markets or replace fiat currency is a major issue.
Mastercard also announced the launch of a CBDC test platform in 2020, which allowed banks to simulate the issuance, distribution, and exchange of CBDCs amongst banks, financial service providers, and consumers.
“Central banks are moving from research to actually wanting to have a tangible product they can experiment with,” Chuy Sheffield, Visa’s head of crypto.
If Visa is successful, it might help bridge the gap between central banks and financial institutions. Visa is accepted by over 80 million merchant locations worldwide.
In the last year and a half, the number of countries investigating CBDCs has more than doubled. According to the Atlantic Council’s CBDC tracker, at least 87 different countries — accounting for 90% of global GDP — are considering financial technology in some way.
China has already started a number of digital yuan pilot initiatives and plans to accept the currency for the Beijing Winter Olympics. Nigeria and the Bahamas have their own CBDCs in circulation.
In early December, Visa announced the formation of a worldwide crypto advisory practice to assist financial institutions in developing their cryptocurrency operations as demand for crypto goods grows.
Related article | Visa Is Building A Payment Channel Network On Ethereum
Featured image from Pixabay, chart from TradingView.com
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ConsenSys Backed Virtue Poker and Binance NFT to Launch “Mystery Box” for Celebrity Tournament on Sept 23
The crypto and blockchain space is maturing at a rapid pace. Most financial industry experts agree that this nascent industry is here to stay because there are many different use-cases emerging for blockchain-enabled platforms.
In addition to the rise of Bitcoin (BTC) as a widely accepted medium-of-exchange and store-of-value, Ethereum (ETH) has become a globally recognized name in the crypto space. Large corporations such as Visa have acknowledged Ethereum’s role in the future of finance and its ability to support a wide range of other applications.
A growing number of online platforms have also been deploying solutions on Ethereum, despite its relatively slow transaction speeds. Even though there are many other blockchains that outperform Ethereum in terms of transactions per second (TPS) and cheaper transaction costs, they do not have the same powerful network effect that Ethereum has been able to acquire. There are also many Ethereum scaling solutions such as Polygon that will aim to make the leading smart contract platform a lot more efficient in the foreseeable future.
Yet Another Ethereum-powered Platform
Virtue Poker, a decentralized platform developed on the Ethereum (ETH) blockchain, reveals that it will be holding a Celebrity Charity Poker Tournament, which will be taking place on September 26, 2021.
The charity poker tournament participants will reportedly include Hall of Fame (HOF) poker player, Phil Ivey, former NBA all-star Paul Pierce, YouTube’s superstar Mr. Beast, TRON blockchain founder and serial crypto entrepreneur Justin Sun, Hollywood actor and accomplished filmmaker Vince Vaughn, Polygon Co-Founder Sandeep Nailwal, and Ethereum Co-Founder and ConsenSys founder Joe Lubin.
The Binance Mysterybox Collection
To commemorate this special event, the Virtue Poker team plans to launch a Binance MysteryBox collection, starting on September 23, 2021 – representing each card in a typical 52 card deck. Collectors who possess the winning hand for each knockout during the Celebrity Event will get a chance to win prizes ranging from ,500 to a ,000 reward for the top prize.
Participants need to purchase two mystery boxes in order to assemble a hand. The participants can then trade with each other so that they can assemble the best poker hand through the secondary market.
The Mystery box will reportedly include an Ace of Spades that will come with Phil’s digital signature and a ,000 prize.
Prizes
All participants with completed hands can compete and have an opportunity to win:
A 00 price for the winning hand for each knockout. If multiple players own the hand, then the 00 prize will be split equally among all the winners. Furthermore, the player who possesses the championship knockout hand will be able to claim a ,000 prize.
If more than one player is holding the championship knockout hand, then only 1 player will be randomly selected to claim the reward
Participants are able to collect as many as (50) completed hands (100 boxes). Participants must also HOLD the winning hand in their Binance account to be eligible for the rewards. Winning players should email support@nfkings.io for confirmation.
Freeroll Tournament
Virtue Poker will also hold a freeroll tournament where ALL holders of (2) mystery boxes should be getting exclusive access to participate in a ,000 free-roll tournament on the Virtue Poker platform.
Virtue Poker NFT holders need to send a message to support@nfkings.io with their UID and NFT screenshot to obtain the Virtue Poker referral code.
Supporting NFT Use-Cases
The Virtue Poker team is looking forward to hosting their Celebrity Tournament and are focused on offering a truly unique NFT experience for their viewers that plan to tune in. Through their partnership with leading crypto exchange Binance, they plan to support the adoption of the Virtue Poker platform and also that of NFTs. They’ve decided to take this step to show that there’s yet another real-world use case for non-fungibel tokens or digital collectibles: interacting through a live event.
The team has also thanked the Virtue Poker community for their support of their platform as they continue to expand their ecosystem in the nascent blockchain-enabled gaming industry.
As noted in the announcement, Virtue Poker is described as a decentralized poker platform that leverages the Ethereum blockchain as well as P2P networking to offer an online poker platform that is safe, “honest” and fun. It was established in 2016 within New York-based Consensys, the leading Ethereum development studio and incubator launched by crypto billionaire and Ethereum co-founder Joe Lubin back in 2014.
Backed by Consensys and stakeholder Phil Ivey, Virtue Poker aims to make blockchain or distributed ledger tech (DLT)-powered betting mainstream.