By Denny Jacob

The Securities and Exchange Commission charged Consensys Software with engaging in an unregistered offer and sale of securities through a service it calls MetaMask Staking.

The regulator also charged Consensys with operating as an unregistered broker through MetaMask Staking and other service it calls MetaMask Swaps.

Consensys didn't immediately respond to a request for comment.

The SEC's complaint alleges that at least since January 2023, Consensys offered and sold tens of thousands of unregistered securities on behalf of liquid staking program providers Lido and Rocket Pool, who create and issue liquid staking tokens in exchange for staked assets. The complaint also alleges that Consensys engages in the unregistered offer and sale of securities by participating in the distribution of the staking programs and operates as an unregistered broker with respect to these transactions.

The SEC's complaint, filed in federal district court in the Eastern District of New York, charges Consensys with violating the registration provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The regulator is seeking injunctive relief and penalties.

Consensys earlier in the month issued a press release disclosing the launch of MetaMask Pooled Staking, which it said allows MetaMask users to earn staking rewards on as little or as much on Ethereum as they like via the MetaMask Portfolio.

Write to Denny Jacob at denny.jacob@wsj.com


(END) Dow Jones Newswires

06-28-24 1404ET