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In a significant move to enhance security, Consensys has acquired Wallet Guard, a renowned crypto security firm. Accordingly, this acquisition is part of Consensys’ strategy to reinforce the security of MetaMask, the leading non-custodial Web3 wallet. Moreover, this move follows a series of strategic acquisitions and integrations aimed at fortifying user protection. By integrating Wallet Guard’s advanced security features, Consensys aims to safeguard users from scams and hacks, ensuring a safer environment for digital assets.
Consensys, the crypto giant behind MetaMask, offers a wide-range of tools and infrastructure in the space such as Infura and the Layer 2 Linea. MetaMask itself has become a key player in the crypto world, with over 30 million monthly active users. The acquisition follows the integration of Blockaid security alerts into MetaMask, which, in turn, protect users across multiple blockchain networks like Ethereum and Polygon. Consequently, Consensys aims to fight what remains as one of the biggest hurdles on the way to wider adoption: scams and hacks.
According to Chainalysis’ 2024 crime report, scammers stole over $1.7 billion worth of crypto in 2023. This alarming figure shows the urgent need for better security measures across the industry. Wallet Guard is known for its ability to detect scams and prevent wallet drainers in real-time. Its browser extension and security features will be added to MetaMask. This will ease the transaction user experience while improving security. Consensys has a history of strategic acquisitions. Companies purchased by Consensys include blockchain microstructure designer Special Mechanisms Group and wallet firm MyCrypto.
On the other hand, Consensys has been involved in a legal battle with the U.S. Securities and Exchange Commission (SEC). Specifically, the regulator sued Consensys, claiming that MetaMask’s staking services involved unregistered securities. In response, Consensys sued the SEC, arguing that the regulator was overstepping its authority. Recently, a Texas judge granted Consensys’s request to expedite a decision on whether the SEC can regulate MetaMask as a securities broker. This ruling represents a potential win for Consensys, as a quick decision might favor their stance. However, legal and regulatory uncertainties remain that may impact the company’s plans and operations.