According to the latest confirmation, ConsenSys, the technology company behind the MetaMask wallet, has acquired the cryptocurrency security firm Wallet Guard. The deal’s value has yet to be disclosed. It’s known that all Wallet Guard personnel will merge with MetaMask’s Product Security team.
????We proudly announce the acquisition of @wallet_guard by Consensys!
This new addition to our family strengthens @MetaMask‘s commitment to user protection, building on recent security feature integrations to safeguard against hacks and scams.https://t.co/V5PnvuxZMf
— Consensys (@Consensys) July 3, 2024
Web3 users suffered significant losses from numerous fraud schemes last year. According to Chainalysis’ 2024 crime report, over $1.7 billion in cryptocurrency was stolen in 2023, following figures of $3.7 billion and over $3 billion in the preceding years.
Wallet Guard helps detect fraud through transaction verification and client-side analysis. ConsenSys plans to integrate Wallet Guard’s browser extension and security tools to protect MetaMask users’ wallets, digital assets, and data from theft, fraud, and scams.
Patrick Berarducci of ConsenSys stated in a press release: “MetaMask stands out among wallet platforms not only for its strong default security features but also for security-enhancing plugins through our Snaps platform.”
ConsenSys has pursued several acquisitions in recent years. Before Wallet Guard, the giant successfully acquired blockchain microstructure designer Special Mechanisms Group (SMG), blockchain data filtering service HAL, and MyCrypto wallet company in 2022.
MetaMask remains the most popular crypto wallet app, trusted by over 30 million users monthly. Last month, ConsenSys launched an ETH staking pool for individual users. With this new feature, users can stake less than the previous minimum of 32 ETH while contributing to Ethereum network security and receiving validator rewards.
However, the staking program has also caused ConsenSys trouble with the U.S. government. Despite ConsenSys’ earlier assertion that the SEC had concluded its Ethereum securities investigation, part of the SEC’s lawsuit against ConsenSys in April alleged that MetaMask’s ETH staking program, alongside Lido and Rocket Pool, constitutes securities.
