Consensys Improves MetaMask with Wallet Guard Acquisition

Consensys recently acquired Wallet Guard, a leading security tool designed to protect digital assets from theft, fraud, and phishing.

By integrating advanced Wallet Guard features, MetaMask is ready to strengthen its defenses against increasingly sophisticated threats in the Web3 ecosystem.

The Wallet Guard team will join the MetaMask product security team at ConsenSys, where they will be tasked with improving fraud and scam detection using advanced phishing detection, web scraping tools, blocklists, and transaction analysis APIs.

🔊We are proud to announce the acquisition @wallet_guard by Consensys!

This new addition to our family strengthens @MetaMaskcommitment to user protection, based on recently introduced security features that protect against hacking and fraud.https://t.co/V5PnvuxZMf

— Consensys (@Consensys) July 3, 2024

Patrick Berarducci, MetaMask and Infura Business Group Lead at Consensys, highlighted the potential impact of this integration. “Users will be protected from ever-evolving threats in our ecosystem, such as malicious decentralized applications and fraud, with advanced phishing detection, web scrapers, and blocklist and transaction analysis APIs that enable advanced fraud detection,” he explained.

This enhancement aims to reduce, if not eliminate, the loss of user funds in the face of numerous security challenges.

Crypto crimes

The urgency of this upgrade is underscored by the growing prevalence of cryptocurrency-related crimes. According to Chainalysis’ 2024 Crypto Crime Report, scams stole over $1.7 billion in crypto assets in 2023 alone. Joe Lubin, co-founder of Ethereum and CEO and founder of ConsenSys, emphasized that the Wallet Guard integration will add a significant layer of security to users, contributing to the company’s mission of creating a safer Web3 environment.

The integration of Wallet Guard’s robust features, such as fraud and exploit detection, will provide MetaMask users with a much-needed layer of security.

Berarducci further explained the strategy behind the acquisition, stating, “We believe that integrating them with Consensys/MetaMask will be an additional layer of security for our users, in addition to our ongoing collaboration with security partners within Web3.”

Regulatory challenges

Despite these security changes, Consensys is currently facing criminal charges from the U.S. Securities and Exchange Commission, which alleges that it operated as an unregistered broker-dealer and collected over $250 million in taxes without registering with the SEC.

The ongoing legal battle casts a long shadow over the acquisition, as its outcome could impact Consensys’ future operational and strategic decisions.

Consensys remains committed to setting new standards in digital asset security, ensuring that users can navigate the Web3 space with greater confidence and reduced risk. ConsenSys’ acquisition of Wallet Guard creates the potential to significantly enhance MetaMask’s security measures, increasing user confidence in Web3 transactions. This marks a step forward in the company’s mission to support a safer and more secure digital asset environment.

Read also: ConsenSys Defends MetaMask in Legal Battle with SEC