Thomas Daniels
Consensys, the developer firm behind the MetaMask wallet, has acquired the Web3 security application Wallet Guard. This strategic move aims to bolster security for MetaMask users, offering robust protection against hacks and crypto scams.
MetaMask Integrates Wallet Guard’s Browser Extension
According to a press release, Consensys will integrate Wallet Guard’s advanced security technology into MetaMask. This includes real-time detection capabilities for scams and wallet drainers, enhancing the security features of the widely used non-custodial wallet.
MetaMask, known for its staking services, has incorporated Wallet Guard’s browser extension to enhance user protection. This integration comes amid regulatory scrutiny from the U.S. Securities and Exchange Commission (SEC). The SEC has sued Consensys, alleging that MetaMask’s staking product involves unregistered securities and operates as an unregistered broker-dealer. Recently, a U.S. judge granted Consensys’ request for an expedited schedule in its lawsuit against the SEC.
Wallet Guard Team Joins MetaMask
As part of the acquisition, the Wallet Guard team, including co-founder Ohm Shah, will join MetaMask. Shah expressed enthusiasm about the acquisition on social media platform X, stating, “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!”
Crypto Scams: A Persistent Threat
This acquisition follows MetaMask’s recent addition of security alerts from Blockaid, a Web3 security solution that scans decentralized applications (dApps) for fraud, phishing, and hacking threats. Blockaid has noted that its solution significantly hinders malicious actors.
Despite efforts to enhance security, crypto scams remain a significant issue. A report from blockchain security firm Chainalysis revealed that crypto scams resulted in over $1.7 billion in losses in 2023. While substantial, this figure is lower than the losses in previous years, with over $3 billion lost in 2021 and more than $3.7 billion in 2022.
