As per a recent Fortune report, Consensys, the company behind the MetaMask crypto wallet, is cutting more than 160 employees across various departments. CEO Joe Lubin announced the layoffs in a blog post, attributing the move to macroeconomic pressures and high legal costs from ongoing battles with regulators. He described the decision as a “necessary but tough” step to streamline operations.

Consensys, initially founded by Lubin in Brooklyn in 2014, serves as a development hub for Ethereum-based projects, including MetaMask, which enables secure Ethereum token storage. The company has since relocated to Texas, where it’s focused on building infrastructure for the Ethereum network. However, regulatory uncertainty has hindered this work, pushing Lubin to challenge the Securities and Exchange Commission (SEC) directly. In April, Consensys sued the SEC, seeking confirmation that Ethereum should not be classified as a security. Though this case was dismissed in the summer, a related SEC lawsuit is still pending.

Lubin’s recent comments align with widespread criticism within the crypto industry about the SEC’s approach, with many alleging that the agency has created a difficult regulatory environment without clear guidelines. SEC Chair Gary Gensler, however, argues that existing regulations are sufficient and has filed several lawsuits against major crypto companies, including Consensys.

Despite these challenges, Consensys recently succeeded in halting an SEC investigation into various Ethereum-dependent firms. Lubin told Fortune that around 162 of Consensys’s 828 employees would be impacted by the cuts, affecting teams across business development, product, and more. The company is providing substantial severance packages, including career support and extended healthcare.

Resources:

Fortune