MetaMask developer Consensys has acquired the crypto security app Wallet Guard in a deal designed to bolster the popular non-custodial web3 wallet's security.
Wallet Guard offers a popular browser extension that can be used to identify scams and wallet drainers in real-time.
Consensys intends to integrate Wallet Guard's browser extension and security engine capabilities to further protect MetaMask users' wallets, digital assets, and data from theft, scams, and fraud, according to a statement shared with The Block.
The integration will improve drainer detection via transaction validation and client-side heuristics, providing users with real-time protection against malicious dapps and scams, the firm said. Consensys did not disclose the value of the deal.
The acquisition follows Consensys' integration of Blockaid security alerts into MetaMask across multiple chains in February, including Ethereum, Linea, BNB Chain, Polygon, Arbitrum, Optimism, and Avalanche. MetaMask estimated that the security alerts would prevent hundreds of millions of dollars worth of crypto assets from being stolen in 2024 alone.
According to Chainalysis' 2024 crime report, over $1.7 billion worth of crypto was stolen through scams alone in 2023, following $3.7 billion in 2022 and more than $3 billion in 2021.
“Wallet Guard has quickly become a premier security tool with advanced capabilities and constant innovation that strategically aligns with Consensys' goal of putting user safety at the forefront”, Consensys CEO and Ethereum co-founder Joe Lubin said. “Their innovative security solutions will be instrumental in our mission to create a safer and more secure environment to continuously pave the way for the industry's mass adoption.”
Wallet Guard's team to join Consensys
The entire Wallet Guard team will also join Consensys as part of the deal, working within its MetaMask product safety department.
“We're thrilled at the opportunity to bring our knowledge and commitment to end-user security to millions of MetaMask users worldwide,” Wallet Guard co-founder and co-CEO Ohm Shah said. “Advancements in security, fraud and scam prevention are essential for the mass adoption of web3.”
MetaMask remains the most widely used crypto wallet app with more than 30 million monthly active users, according to data provided by the firm.
Last month, Consensys launched pooled staking for the web3 wallet, enabling MetaMask users to stake any amount of ether to contribute to Ethereum network security and earn validator rewards.