ConsenSys Acquires Wallet Guard to Enhance MetaMask Security

ConsenSys, the developer behind MetaMask, has acquired the cryptocurrency protection application Wallet Guard. This acquisition aims to bolster the security of the non-custodial wallet.

?We proudly announce the acquisition of @wallet_guard by Consensys!

This new addition to our family strengthens @MetaMask‘s commitment to user protection, building on recent security feature integrations to safeguard against hacks and scams.https://t.co/V5PnvuxZMf

— Consensys (@Consensys) July 3, 2024

The terms of the agreement have not been disclosed.

The integration of Wallet Guard will enhance the detection of drainers through transaction checks and client-side heuristics, providing users with real-time protection against malicious dapps and fraud.

In February, the MetaMask team, in partnership with Blockaid, made security notifications available by default across various networks, including Ethereum, Linea, BNB Chain, Polygon, Arbitrum, Optimism, and Avalanche.

This feature is designed to proactively prevent malicious transactions and protect users from scams, phishing, and hacking attempts.

Developers have suggested that in 2024, these notifications could prevent asset thefts amounting to “hundreds of millions of dollars.” 

“[The integration of] Wallet Guard […] strategically aligns with ConsenSys’s goal of prioritizing user security,” stated the organization’s CEO and Ethereum co-founder Joseph Lubin.

The company referred to a report by Chainalysis, which claims that over $1.7 billion in digital assets were stolen through fraud in 2023. In 2022 and 2021, the figures were $3.7 billion and $3 billion, respectively.

In the second quarter of 2024, SlowMist’s MistTrack service received 467 reports of cryptocurrency thefts. Funds from 18 victims amounting to $22.66 million were frozen. Experts identified key leaks, phishing, and fraud as the most common methods.

In June, developers of the non-custodial wallet introduced a “collective” Ethereum staking feature. This service lowers the entry threshold of 32 ETH (~$113,000) for ordinary users.

Prior to this, MetaMask introduced “smart transactions” to protect against MEV bots.