Consensys was sued by the SEC in July of this year. The lawsuit involves the staking and swap services offered by its wallet, MetaMask. On the other hand, the SEC has placed the cryptocurrency sector on its 2025 priority list.
Consensys, the company behind the MetaMask wallet and Infura, announced the layoff of 160 employees on Tuesday (29). The mass layoff represents 20% of Consensys' workforce and was announced by Joseph Lubin, the company's founder and CEO.
In the text, the executive blames macroeconomic conditions, such as high interest rates, as well as regulatory pressure from the Securities and Exchange Commission for the decision.
The company was recently sued by the SEC, as were several other companies in the sector.
Consensys lays off 160 employees
Founded by Ethereum co-founder Joe Lubin, Consensys is one of the most powerful names in Ethereum and the cryptocurrency industry. However, even this giant is facing financial troubles.
“The lack of clear regulatory frameworks in some markets has made navigating our evolving space unnecessarily complex for innovators, builders, investors and businesses.”
“Multiple cases with the SEC, including ours, represent significant jobs and productive investments lost due to the SEC’s abuse of power and Congress’s failure to rectify the problem,” Lubin wrote. “These attacks by the U.S. government will ultimately cost millions of dollars to many companies that have been investigated, sued, or received Wells Notices.”
Consensys was sued by the SEC in July of this year. The lawsuit involves the staking and swap services offered by its wallet, MetaMask. On the other hand, the SEC has placed the cryptocurrency sector on its 2025 priority list.
Lubin is optimistic that he sees a future where small, agile, AI-powered companies will operate more efficiently than traditional competitors. So this mass layoff also means restructuring.
The company promised those laid off generous severance packages, an extension of the term on stock purchases, referrals to other companies, and comprehensive health benefits.
The Future of Consensys
Despite the mass layoffs, Consensys promises to continue working on its products, which include MetaMask, Infura, Truffle, Diligence, Besu, Teku, GNARK, DIN and Linea.
Highlights include improved core product experience and interface, enhanced multi-chain capabilities, and the launch of the MetaMask card.
Finally, Joe Lubin states that further announcements will be made in the coming weeks to provide more details about the future of his company.
