Commonly used online wallet MetaMask is one of the largest players in the cryptocurrency and non-fungible token markets and is used by millions of people. A new report shows that MetaMask could be owned by a top U.S. and global banking company.
What Happened: Shareholders of ConsenSys AG have filed for an independent audit of transactions involving MetaMask and Infura. The request was filed by 35 former employees representing 50% of ConsenSys shareholders, according to a CoinDesk report.
ConsenSys is an Ethereum (CRYPTO: ETH) development company that transferred control of MetaMask and Infura away. The transfer of assets took place in August 2020.
“We’ve filed to have a court assess the transaction, and if the court deems it necessary, they will appoint an independent auditor to provide further scrutiny,” former ConsenSys AG employee Arthur Falls told Coindesk.
ConsenSys was founded by Joe Lubin, one of several co-founders of Ethereum. The suit alleges that Lubin benefitted as he retained ownership of the lucrative assets and transferred debt to the previous company. Lubin is the majority shareholder in both ConsenSys CAG (CAG)and ConsenSys Software (CSI).
The former employees are invoking the Swiss Code of Obligations, which could void the prior transactions. Lubin and board member Frithjof Weinert were both directors at CAG and CSI, which is not allowed as dual representation in Swiss and U.S. law.
The report also alleges shareholder meetings didn’t take place and all parties were not present when votes were taken and asset transactions discussed and approved.
ConsenSys “refutes the allegations” by the former shareholders, head of marketing and brand for the company Diana Richter said.
“The business fundamentals and operating environment are entirely different today than at the time of the transaction, though the group would like to apply a valuation that might be achieved today to a set of projects that were pre-monetized during the darkest days of COVID when the transaction took place,” Richter said.
A ConsenSys spokesperson estimated the 35 shareholders owned 12% of the shares outstanding, far less than the 50% claimed.
Related Link: What Is Metamask?
Why It’s Important: MetaMask was valued at $4.4 million during the transaction according to documents viewed by CoinDesk.
JPMorgan Chase & Co (NYSE:JPM) took a 10% stake in CSI as part of the transaction, the report alleges.
ConsenSys spin-off CSI raised $200 million at a valuation of $3 billion in November 2021. Coinbase Global Inc (NASDAQ:COIN) was among the investors in the company in November. The company could be valued at $7 billion in a new round according to Protos.
MetaMask and Infura, a node network, are considered as valuable pieces to the Ethereum infrastructure.
Many in the cryptocurrency community are now questioning the ownership and arguably upset that a large banking company could own a piece of important infrastructure for a decentralized world.
If the lawsuit moves forward, it could cast a negative light on JPMorgan by those in the cryptocurrency space.
Photo: analogicus from Pixabay
