According to the lawsuit, Consensys has operated as an unregistered securities broker since October 2020. The department believes that since January 2023, the company has been offering and selling unregistered securities through MetaMask Staking. The SEC complaint says the company collected more than $250 million in fees.
The SEC alleges in the lawsuit that by facilitating investments in the Lido and Rocket Pool staking programs, Consensys acted as an intermediary in unregistered transactions, depriving investors of legal protection. Lido and Rocket Pool are classified as investment contracts in the lawsuit.
According to the agency, investors participating in staking programs invest ETH with a reasonable expectation of profit, however, neither Lido nor Rocket Pool have filed a registration statement with the SEC. The Commission demands a complete ban on the MetaMask Staking service,
The US Supreme Court previously limited the Securities and Exchange Commission’s authority to issue guilty verdicts on its own in cases brought by the agency.
Source: Bits
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