SEC Targets Consensys for Brokerage Activities in Lido and Rocket Pool Investments by@secagainsttheworld
SEC Targets Consensys for Brokerage Activities in Lido and Rocket Pool Investments
by SEC vs. the WorldJuly 10th, 2024
Too Long; Didn't Read
The SEC alleges that Consensys operated as an unregistered broker through MetaMask Staking, handling transactions in Lido and Rocket Pool investment contracts without proper registration. This investigation raises regulatory concerns over brokerage activities in the crypto ecosystem.
SEC v. Consensys Software Inc. Court Filing, retrieved on June 28, 2024, is part of HackerNoon’s Legal PDF Series. You can jump to any part in this filing here. This part is 22 of 26.
VI. CONSENSYS ALSO ACTS AS A BROKER WITH RESPECT TO THE LIDO AND ROCKET POOL INVESTMENT CONTRACTS.
324. Through its MetaMask Staking program, Consensys also acts as a broker by effecting transactions in the Lido and Rocket Pool investment contracts for the account of others.
325. As alleged above, Consensys solicits potential investors, holds itself out as a place to buy and sell the investment contracts, and recommends which of the two investment contracts will offer the highest rewards.
326. Consensys then effects the transaction on the investor’s behalf.
327. Specifically, as noted, Consensys through the MetaMask Staking software handles the investor’s assets by removing the investor’s ETH from the investor’s MetaMask wallet and transferring it to the MM Staking Router Smart Contract, which, in turn, transfers it to the Lido or Rocket Pool proxy smart contract.
328. Finally, Consensys’s software, transfers the acquired token—stETH or rETH—into the investor’s MetaMask Wallet.
Continue Reading Here.
About HackerNoon Legal PDF Series: We bring you the most important technical and insightful public domain court case filings.
This court case retrieved on June 28, 2024, storage.courtlistener.com is part of the public domain. The court-created documents are works of the federal government, and under copyright law, are automatically placed in the public domain and may be shared without legal restriction.
L O A D I N G
. . . comments & more!
. . . comments & more!
