ConsenSys Cuts 20% Staff, CEO Cites SEC Legal Battles

ConsenSys, the company behind MetaMask wallet, announced the layoff of 162 employees across all divisions, reducing its workforce from 828 to 666.

CEO Joe Lubin attributed the decision to macroeconomic challenges and ongoing regulatory battles with the Securities and Exchange Commission.

ConsenSys CEO attributes multiple reasons

https://x.com/ethereumJoseph/status/1851253503064244707

In a detailed blog post, Lubin highlighted the financial strain of multiple SEC cases, stating that regulatory “attacks from the US government” are costing companies millions of dollars.

The statement references ConsenSys’s April lawsuit against the SEC, which sought clarity on Ethereum’s security status, though the case was dismissed by a federal court.

Founded in Brooklyn in 2014 as an Ethereum ecosystem incubator, ConsenSys has since relocated to Texas. The company’s flagship product, MetaMask, provides decentralized token management and service access for Ethereum users.

The layoffs affect all company divisions, including:

• Business development
• Product teams
• Infrastructure development

Despite recent setbacks, ConsenSys reports one regulatory victory, successfully pushing back against an SEC investigation into Ethereum-related operations.

Looking ahead, Lubin announced plans to accelerate the company’s transition toward a decentralized “Network State” structure.

The restructuring reflects broader industry challenges as cryptocurrency companies navigate regulatory uncertainty and economic headwinds.