Consensys Layoff Causes 20% ​​of Forces to Be Affected

Key Points:

• Consensys is laying off over 160 employees due to economic challenges and legal costs from ongoing regulatory disputes with the SEC.
• The Consensys layoff is a “prudent” move to streamline operations.

According to Fortune, Consensys, the blockchain technology company behind the popular MetaMask crypto wallet, lays off 20% of its staff, which is over 160 workers across all divisions.

Read more: ConsenSys SEC Lawsuit Dismissed by Court

Consensys Layoff Takes Place Amid Regulatory Pressures

Founder and chief executive Joe Lubin just announced the Consensys layoff in a blog post, citing both economic pressures and significant legal expenses related to ongoing regulatory difficulties with U.S. authorities, especially the Securities and Exchange Commission (SEC).

Lubin stressed that the firm’s court fight with the SEC had turned out to be expensive and relentless. He pointed fingers at the SEC’s approach and said that this type of regulatory uncertainty subdued growth and innovation within the crypto sector.

“Multiple cases with the SEC, including ours, represent meaningful jobs and productive investment lost due to the SEC’s abuse of power and Congress’s inability to rectify the problem,” he wrote. It is a view widely held within the crypto industry, which has seen a succession of SEC-led lawsuits against leading companies for alleged securities violations.

SEC Chair Gary Gensler has maintained that current laws provide clear guidelines, though companies like Consensys disagree.

Consensys Looks to a Decentralized Future with “Network State” Model

Consensys was founded by Lubin in Brooklyn in 2014 to support projects using Ethereum, the world’s second-largest blockchain network. Its flagship product, MetaMask, is a decentralized platform on which Ethereum users store tokens and interact with related services.

In the last few years, the company moved its headquarters to Texas, where it has continued working on building out the Ethereum infrastructure even as challenges mounted from regulatory challenges. In January of this year, Lubin filed a pre-emptive lawsuit looking for affirmation that Ethereum was not considered a security.

Against the backdrop of Consensys layoffs, Lubin called the decision “prudent” to streamline operations. The company has confirmed severance packages, extended healthcare benefits, and career support for the affected employees.