Consensys, the creator of the popular MetaMask cryptocurrency wallet, is laying off more than 160 employees across all departments of the company. CEO Joe Lubin announced the layoffs in a blog post, citing challenges from the macroeconomy and legal expenses related to the company’s ongoing battles with regulators.
“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,” wrote Lubin. “Such attacks from the US government will end up costing many companies…many millions of dollars.”
Lubin’s remarks reflect a common sentiment in the cryptocurrency industry that the Securities and Exchange Commission has not been transparent in setting out clear regulatory guidelines for digital asset companies. SEC Chair Gary Gensler maintains that existing laws are clear and has filed lawsuits alleging securities law violations against leading companies in the crypto industry, including Consensys.
Consensys was founded by Lubin in Brooklyn in 2014 as an incubator for projects leveraging the emerging blockchain technology, which is now the second-largest blockchain and a key component of the crypto industry. MetaMask, its flagship product, provides a decentralized way to store tokens in the Ethereum ecosystem and access related services.
The company has since moved its headquarters to Texas, focusing on developing infrastructure tools to support Ethereum. Regulatory uncertainty has hindered this work in recent years, prompting Lubin to sue the SEC in April in an effort to confirm that Ethereum is not a security—a belief shared by many crypto experts. While one federal court dismissed the case this summer, a related lawsuit filed by the SEC is ongoing.
Consensys has seemingly won a legal victory, compelling the agency to back off from an investigation into firms and developers relying on Ethereum.
Lubin informed Fortune that the layoffs, described as a “difficult but necessary decision to streamline our operations,” will affect approximately 162 of the company’s 828 employees. Layoffs will impact all departments, including business development and product teams.
The company is offering generous severance packages, including career assistance and extended healthcare benefits.
Looking ahead, Lubin stated that Consensys will work towards accelerating its transition from a traditional company to a decentralized “Network State” in line with blockchain principles.