Consensys, the Ethereum developer firm behind the MetaMask wallet, has acquired Web3 security app Wallet Guard.
The MetaMask developer will use the deal to bring a new layer of security to the popular non-custodial wallet app, offering users further protection against potential hacks and crypto scams.
MetaMask integrates Wallet Guard’s browser extension
According to a press release, Consensys will leverage Wallet Guard’s security technology, which includes real-time detection for scams and wallet drainers, to protect its MetaMask users.
MetaMask, a popular wallet for staking, has integrated the Web3 wallet security platform’s browser extension to tap into its protection capabilities.
Notably, MetaMask’s staking product has attracted regulatory action from the U.S Securities and Exchange Commission (SEC).
The regulator sued Consensys over the wallet app’s offering, alleging it offered unregistered securities and operated as an unregistered broker dealer. As reported yesterday, a U.S judge has granted Consensys’ request for an expedited schedule in an earlier lawsuit that the firm filed against the regulator.
Wallet Guard team joins MetaMask
Wallet Guard has joined the MetaMask team as a result of the deal, which Wallet Guard co-founder Ohm Shah confirmed in a statement on X.
“We’ve been on a mission to protect users since we started Wallet Guard. I’m thrilled to say we’ve been acquired by Consensys and are now on the same mission but from within MetaMask!” the Wallet Guard co-founder said.
Crypto scams account for millions of stolen funds
Today’s announcement from Consensys comes a few months after MetaMask added support for security alerts from Blockaid, a Web3 security solution that scans dApps for fraud, phishing, and hack threats.
In April, Blockaid shared a post on X that suggests its solution makes “the lives of drainers so hard they decide to quit.”
In a report earlier this year, blockchain security firm Chainalysis revealed that crypto scams led to the loss of over $1.7 billion in crypto assets in 2023. While a huge figure, the amount however pales in comparison to the over $3 billion lost in 2021 and more than $3.7 billion in 2022