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 […]
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Metamask Updates Privacy Policy, Explains When It May Process Users’ IP Addresses
Metamask, the popular Ethereum wallet, has updated its privacy policy. The update provides users with greater transparency and control over their personal data, specifically concerning IP address processing. According to the new policy, Metamask may temporarily process a user’s IP address only when required for certain services, depending on the user’s Metamask settings. This is […]
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Metamask Aims to Add Bitcoin Support: A New Chapter for the Popular Ethereum Wallet
Metamask, the popular ethereum wallet, is reportedly planning to add support for bitcoin (BTC) in the next month or so, according to sources cited by Coindesk. While details are scarce, the integration could initially begin with basic features and expand over time. This move would significantly expand Metamask’s reach beyond the Ethereum ecosystem, which it […]
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Metamask Launches Ethereum Validator Staking Services
Metamask, the Ethereum Virtual Machine (EVM) wallet, has announced the launch of its validator staking services for Ethereum. The feature will allow users who want to stake their ether to do it simply from the Metamask portfolio interface, without managing hardware equipment, while maintaining custody of the cryptocurrency staked.
Metamask Introduces Validator Staking for Ethereum
Metamask, the Ethereum and Ethereum Virtual Machine (EVM) wallet, has introduced its validator staking services. The new feature allows users with 32 ETH to stake them directly from the interface of Metamask Portfolio.
The service backend is run by Consensys Staking, which manages over 4% of the total ETH staked, with over 33,000 validators having 99.99% uptime. Also, Metamask states that Consensys has not been slashed, a kind of penalty that Ethereum validators face when registering “dishonest behaviors” by the network.
Metamask stresses this addition simplifies the processes for users who want to stake ether. In an article presenting these services, Metamask remarked on the pros of staking ETH using this new functionality, explaining that it “removes the technical barriers needed to secure the network, democratizes participation in Ethereum staking for those unable or unwilling to solo stake, and offers you easy monitoring of your deposit and rewards.”
The wallet also declared it offers one of the highest rewards percentages – over 7% of the network average – giving users the benefit of maintaining self-custody and control of their staked tokens without having to hassle with hardware issues.
Metamask has been slowly including new features to complement its wallet use case. In January 2022, the wallet included the possibility of staking ETH via liquid staking services like Lido or Rocket Pool. In September, it announced that users from certain states of the U.S., the U.K., and parts of Europe would be able to sell their cryptos and cash out to U.S. dollars (USD), British pounds (GBP), and euros (EUR) directly from the wallet interface.
What do you think about Metamask’s validator staking services? Tell us in the comments section below.
Metamask and Blockaid Unite to Fortify Web3 Security With Security Alerts
In a recent development, Metamask, a self-custody Web3 platform developed by Consensys, has partnered with Blockaid, a Web3 security provider. The collaboration aims to integrate security alerts within the Metamask extension in order to enhance the platform’s security features.
Metamask and Blockaid Collaborate for Web3 Security
The latest Metamask initiative focuses on detecting and stopping malicious transactions, offering protection against various cyber threats such as scams, phishing attempts, and hacking. The collaboration between Metamask and Blockaid has reportedly prevented a significant security breach, protecting over 0,000 in assets from a targeted hack on an account associated with Ethereum co-founder Vitalik Buterin.
The security alerts represent a new development in the ongoing efforts of Metamask and Blockaid to improve Web3 platform security. The two entities have implemented a privacy-preserving module to simulate transactions without requiring users to disclose their data to third parties, aiming to maintain user confidentiality and foster a secure digital environment.
“With these native privacy-preserving security alerts, Metamask is not only enhancing user safety but also setting a new standard for privacy-preserving security in the web3 ecosystem,” Metamask co-founder Dan Finlay stated.
In April, Blockaid and Metamask introduced security alerts tailored for Opensea, successfully preventing attempted attacks totaling 0 million to this point. With this achievement, both companies are hopeful that the upcoming security alerts, when set as a default feature in Metamask wallets, will similarly contribute significantly to reducing potential financial losses.
The alert system was introduced following Metamask’s rollout of a new crypto-to-fiat feature, now available in the U.S., U.K., and European markets. Starting Tuesday, desktop users were given the option to enable the alert feature in the Metamask experimental settings.
Plans are in place to introduce the feature on the Metamask mobile app later in November 2023. By the first quarter of 2024, the feature is expected to be integrated and enabled in the wallet by default, with the intention of making it accessible to all of Metamask’s users.
What do you think about Metamask’s and Blockaid’s alert initiative? Share your thoughts and opinions about this subject in the comments section below.
Metamask Wallet Users Can Now Cash Out Crypto to Fiat
The popular Ethereum wallet Metamask has introduced a new feature allowing users to convert crypto to major fiat currencies. The “Sell” option currently supports cashing out ether (ETH) and is available to users in the U.S., the United Kingdom, and some European markets.
New Feature of Metamask Wallet Allows Users to Sell Ether for Fiat
Metamask, a widely used Ethereum wallet, has offered ETH holders an easy way to cash out their cryptocurrency to fiat money. At the moment, the “Sell” feature is available in the U.S. — where certain state restrictions apply — the U.K., and parts of Europe, but the intention is to add more regions, the wallet’s team said on Tuesday.
Users can currently cash out to U.S. dollars (USD), British pounds (GBP), and euros (EUR). They can have the fiat amount sent to a bank account or a Paypal balance where these fiat account destinations are available, depending on location. “We’re initially supporting ETH on Ethereum Mainnet, with plans to expand to native gas tokens on layer 2 networks soon,” the announcement also noted.
To sell crypto, users need to connect a Metamask wallet to the Metamask Portfolio decentralized application (dapp). After clicking the “Sell” tab, there is a prompt to select the user’s region and the token they want to sell as well as a fiat account destination available depending on location. The user then enters the crypto amount for conversion.
They will also be presented with real-time quotes from providers that Metamask works with, redirected to the website of a provider of choice in order to sign up and link their fiat account, and then directed back to the Metamask Portfolio platform. There users need to send the ETH to the selected provider and confirm the transaction in their Metamask wallet.
To buy and sell cryptocurrency, users of the Metamask wallet will need to sign up and link their bank account only once with a vetted provider. The service promises to enable them to “have a self-sufficient web3 experience with fewer intermediaries.”
Consensys, the crypto company behind Metamask, has been working to expand the wallet’s features. In October 2022, it added bank-to-crypto transfers through the automated clearing house (ACH) settlement merchant Sardine, that facilitates instant crypto purchases with no settlement delays and orders completing within minutes.
What do you think about Metamask’s new feature allowing crypto-to-fiat conversion? Tell us in the comments section below.
New Feature Enables Nigerian Metamask Wallet Users to Buy Crypto Assets Within the App
Metamask users in Nigeria can now directly and instantly buy crypto assets within the mobile app, Consensys and its Web3 infrastructure partner Moonpay have said. According to a Consensys executive, rolling out this feature helps to reduce friction while bringing down barriers that block or stop Nigerians from embracing Web3.
Purchasing Crypto via Instant Bank Transfers
Consensys, one of the leading Web3 firms, has said users of the Metamask wallet in Nigeria can now directly purchase crypto assets within the mobile app. To help it make this possible, Consensys partnered with the Web3 infrastructure company Moonpay. The addition of this feature allows users from the country to purchase crypto assets without having to set up accounts with centralized crypto exchanges.
In a March 21 joint statement, Consensys said the decision to enable direct purchases had been prompted by the very high number of declined or blocked transactions when the method of payment is a credit or debit card. However, using this recently added feature, Metamask users can now use instant bank transfers to purchase crypto within the mobile app and the portfolio dapp (decentralized application).
Simplifying User Experience
Commenting on the addition of the new feature to the wallet, Lorenzo Santos, the senior product manager at Metamask, noted:
This is an essential next step in a critical market that has embraced crypto and Web3 but faces serious challenges when using [the] fiat to crypto on-ramp. We are reducing friction and bringing down barriers to keep supporting Nigerians as they onboard into Web3.
Zeeshan Feroz, the chief product & strategy officer of Moonpay, said the integration makes it possible for Nigerians to fund their self-custody wallet through what he described as “a simplified user experience.”
Meanwhile, the statement also revealed that Consensys and its partner plan to roll out this feature in Kenya, Botswana, and South Africa in the coming month.
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What are your thoughts on this story? Let us know what you think in the comments section below.
Hackers Attack Domain Registrar Namecheap; Flood of DHL and Metamask Phishing Emails Follow
On Sunday, Feb. 12, 2023, the domain registrar Namecheap’s email account was compromised by hackers. Subsequently, a large number of individuals received phishing emails claiming to be from Metamask and DHL. These emails originated from the email platform Sendgrid, a service used by Namecheap for marketing correspondence.
Namecheap Confirms Email Account Compromise and Disables Sendgrid Services
Multiple reports indicate that Namecheap was breached on Sunday and hackers leveraged the company’s email account through the Sendgrid service. Namecheap CEO Richard Kirkendall confirmed the compromise and said the firm has disabled Sendgrid services. “To be clear, the issue was within a third-party provider that we use to send our newsletter,” Kirkendall tweeted. “None of our own systems or customer accounts were breached. I sent a follow-up email to all affected users. The domains linked in the original phishing emails were also disabled.”
According to users who investigated the sent emails, the links led to a phishing campaign attempting to steal private information from the user. For example, the Metamask email led to a fake website trying to get the user to enter their mnemonic recovery phrase. Metamask also tweeted about the Namecheap emails and told recipients to ignore the messages. “Metamask does not collect KYC information and will never email you about your account,” the company tweeted. The Web3 wallet firm added:
Do not enter your Secret Recovery Phrase on a website EVER. If you got an email today from Metamask or Namecheap or anyone else like this, ignore it & do not click its links!
Phishing attacks have been common in recent years, and hackers have used various methods to access people’s private information. According to reports, the DHL phishing email aims to provide the user with an invoice to get the user to enter payment information to resolve the fake issue. Once a user provides information like their mnemonic recovery phrase or other financial information, hackers can drain the funds from the account.
According to Beehive Cybersecurity, Namecheap’s team members took immediate action to resolve the issue. “We’d like to vouch that when we ourselves notified Namecheap of this, they acted promptly and treated it seriously,” Beehive Cybersecurity tweeted. “This is the A game of what we like to see from registrars.”
What measures could you take to protect yourself from phishing attacks like this one? Share your thoughts and strategies in the comments below.