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Consensys, the Ethereum-focused software giant behind the MetaMask wallet, announced layoffs affecting about 20% of its workforce and said ‘’abuse of power’’ by the Securities and Regulatory Commission (SEC) is partly to blame.
The New York-based company, led by Ethereum Co-founder Joseph Lubin, said on Oct. 29 that it would eliminate 162 positions, citing regulatory uncertainty and macroeconomic conditions, including rising interest rates and inflation, as key factors.
Consensys Entangled In Legal Battle With SEC
The company has been entangled in a legal battle with the SEC, which has accused it of operating as an unregistered broker.
“The lack of clear regulatory frameworks in some markets has made navigating our evolving space unnecessarily complex for innovators, builders, investors, and businesses,” Lubin said. “Multiple cases with the SEC, including ours, represent meaningful jobs and productive investment lost due to the SEC’s abuse of power. Such attacks from the US government will end up costing many companies that have been investigated, sued, or sent Wells Notices, many millions of dollars. ”
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The broader macroeconomic conditions over the past year and ongoing regulatory uncertainty have created broad challenges for our industry, especially for US-based companies.
— Joseph Lubin (@ethereumJoseph) October 29, 2024
In late June, the SEC alleged that Consensys failed to register as a brokerage and improperly collected millions in fees. The agency claimed the company brokered over 36 million crypto transactions since 2020, including at least 5 million that were securities.
This regulatory pressure has significantly impacted the company, leading to increased legal costs and operational challenges.
The layoffs come amid a challenging year for Consensys, which had already cut around 11% of its workforce at the start of 2023.
The Ethereum price climbed 1.5% in the last 24 hours to trade at $2,670 as of 6.22 a.m. EST, according to CoinGecko.
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