Consensys the firm behind the prominent cryptocurrency wallet MetaMask, has acquired Wallet Guard. The acquisition comes in a bid to enhance the Web3 wallet’s security.
The development has been confirmed by Wallet guard co-founder Martin on X. He is also the senior product manager at MetaMask.
Enhanced security for MetaMask users
As a part of the move, the entire Wallet Guard team will onboard Consensys as a part of the MetaMask Product Safety Team.
Not much has been disclosed about the deal; as such, the terms of the acquisition remain unknown.
MetaMask is looking to integrate Wallet Guard’s browser extension and security engine. This will install an added layer of safety for the wallet’s users by shielding their assets from theft, scams, and fraud.
Wallet Guard is an open-source browser extension that scans URLs of web3 and web2 websites to detect malicious content. The extension then warns users of platforms and smart contracts that have been flagged as risky.
It also offers a transaction simulation protocol that detects and simulates the full events of a transaction before it is actually detected. As such, users become aware of their actions before approving anything.
On top of this, Wallet Guard also employs Stormwatcher, a protocol designed to detect wallet drainers.
Prior to the acquisition, the extension boasted support for 4 blockchain networks, namely, Arbitrum, Ethereum, Optimism, and Polygon.
As a part of the acquisition, all of these features will be integrated into MetaMask.
According to Patrick Berarducci, MetaMask and Infura lead at Consensys, users will now be protected from “malicious DApps and scams.” He added that Consensys expects to “drive user fund losses to zero.”
The merger closely follows Consensys’ integration of Blockaid security alerts into MetaMask. This enabled security alerts on its mobile app and browser extension by default. Users will be automatically alerted of malicious transactions.
Improvements continue despite legal trouble
Consensys has continued to focus its efforts on enhancing its offerings despite its legal troubles.
The firm is currently embroiled in a lawsuit with the United States Securities and Exchange Commission (SEC). The SEC claims Consensys operated as an unregistered securities broker.
Specifically, the commission claims MetaMask swaps are securities offerings, and the firm has collected more than $250 million in fees by brokering these transactions. Additional complaints include offering staking services without registration.
The regulator is seeking a permanent injunction, civil penalties and other equitable relief.
However, these actions don’t seem to have deterred the Ethereum-focused software developer. As previously reported by Invezz, the firm had announced its intention to commit significant capital to fight the SEC over the legal classification of Ethereum.
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