{"id":222846,"date":"2022-03-04T12:30:50","date_gmt":"2022-03-04T12:30:50","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=222846"},"modified":"2026-10-24T12:37:11","modified_gmt":"2026-10-24T11:37:11","slug":"ethereum-blasted-as-a-trojan-horse-for-tyranny-following-metamask-scandal","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/ethereum-blasted-as-a-trojan-horse-for-tyranny-following-metamask-scandal\/","title":{"rendered":"Ethereum blasted as &#8220;trojan horse for tyranny&#8221; following MetaMask scandal"},"content":{"rendered":"<p><a href=\"https:\/\/cryptoslate.com\/metamask-blocks-ethereum-transactions-in-several-jurisdictions-citing-compliance-issues\/\">MetaMask<\/a> users in Iran and Venezuela reported problems with completing transactions yesterday. It later emerged that affected users were deliberately blocked for &#8220;legal compliance&#8221; reasons.<\/p>\n<p>This is possible because MetaMask uses an API or gateway service through <a href=\"https:\/\/academy.moralis.io\/blog\/infura-explained-what-is-infura\">Infura<\/a>. Like MetaMask, Infura is also owned by Ethereum developers ConsensSys, following its acquisition in <a href=\"https:\/\/www.crunchbase.com\/organization\/infura\">October 2019<\/a>.<\/p>\n<blockquote><p><span class=\"ILfuVd\"><span class=\"hgKElc\">&#8220;I<\/span><\/span><span class=\"ILfuVd\"><span class=\"hgKElc\">nfura is <b>a Web3 backend and Infrastructure-as-a-Service (IaaS) provider that offers a range of services and tools for blockchain developers<\/b>. This includes the Infura API (Application Programming Interface) suite.<\/span><\/span>&#8220;<\/p><\/blockquote>\n<p>As expected, the community response wasn't pretty, with deceit over decentralization being a common theme. And considering what's happening in Russia-Ukraine, some realize that you or I could be next.<\/p>\n<h2>The brutal truth about MetaMask censorship<\/h2>\n<p>The Block's VP of Research, <a href=\"https:\/\/twitter.com\/lawmaster\/status\/1499423160957034496\">Larry Cermak<\/a>, said that if MetaMask is prepared to block Venezuelan IP addresses, it won't be long before they block individual IP addresses. As a result, Cermak suggested users move to alternative wallet providers.<\/p>\n<div class=\"css-1dbjc4n\">\n<blockquote>\n<p id=\"id__rlrw1n0ppzo\" class=\"css-901oao r-1fmj7o5 r-37j5jr r-a023e6 r-16dba41 r-rjixqe r-bcqeeo r-bnwqim r-qvutc0\" dir=\"auto\" lang=\"en\"><span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">&#8220;If <\/span><span class=\"css-901oao css-16my406 r-poiln3 r-b88u0q r-bcqeeo r-qvutc0\">Metamask<\/span><span class=\"css-901oao css-16my406 r-poiln3 r-bcqeeo r-qvutc0\">\/Infura is open and willing to block countries like Venezuela by IP addresses, it's only a matter of time until they are forced by regulators to censor individual people's IP addresses. We need alternatives immediately, hoping that Alchemy and others don't do this.&#8221;<\/span><\/p>\n<\/blockquote>\n<p dir=\"auto\" lang=\"en\">But the latest data on MetaMask users shows there are 21 million monthly active users, making it the <a href=\"https:\/\/www.moonstats.com\/news\/metamask-the-worlds-largest-cryptocurrency-wallet\/\">most popular<\/a> wallet on the market. As such, making the jump to a viable alternative could prove tricky.<\/p>\n<p dir=\"auto\" lang=\"en\">The Magic Internet Money podcast host, <a href=\"https:\/\/twitter.com\/bradmillscan\/status\/1499465625223286787\">Brad Mills<\/a>, called Ethereum &#8220;a trojan horse for tyranny.&#8221; Mills pointed out that big corporations, including JPMorgan, are behind ConsenSys. He added that only Bitcoin is &#8220;government-resistant.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Ethereum is a trojan horse for tyranny. <\/p>\n<p>Consensys owns Infura & Metamask. JP Morgan, UBS, Mastercard own Consensys.<\/p>\n<p>99% of EVM transactions go through Consensys.<\/p>\n<p>DeFi is captured by VCs & banks. <\/p>\n<p>Only <a href=\"https:\/\/x.com\/hashtag\/bitcoin?src=hash&ref_src=twsrc%5Etfw\">#bitcoin<\/a> is government-resistant. Ethereum is not even insider-resistant. <a href=\"https:\/\/t.co\/zohPDtyD0H\">pic.twitter.com\/zohPDtyD0H<\/a><\/p>\n<p>&mdash; Brad Mills \ud83d\udd11\u26a1\ufe0f (@bradmillscan) <a href=\"https:\/\/x.com\/bradmillscan\/status\/1499465625223286787?ref_src=twsrc%5Etfw\">March 3, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.x.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In response to the backlash, <a href=\"https:\/\/twitter.com\/MetaMask\/status\/1499448223399759896\">MetaMask<\/a> said the issue came down to an Infura &#8220;misconfiguration&#8221; and has now been resolved.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">MetaMask is a client-side wallet that strives to make the blockchain maximally accessible to everyone. Infura had a misconfiguration this morning, but it has been corrected now. <a href=\"https:\/\/t.co\/CYAhvGunHo\">https:\/\/t.co\/CYAhvGunHo<\/a><\/p>\n<p>&mdash; MetaMask \ud83e\udd8a (@MetaMask) <a href=\"https:\/\/x.com\/MetaMask\/status\/1499448223399759896?ref_src=twsrc%5Etfw\">March 3, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.x.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>However, this doesn't explain the MetaMask support notice describing the service outage due to &#8220;legal compliance&#8221; reasons.<\/p>\n<figure id=\"attachment_222868\" aria-describedby=\"caption-attachment-222868\" style=\"width: 864px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-222868 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/03\/FM-RgEqWUAAOGVZ.png\" alt=\"MetaMask support notice\" width=\"864\" height=\"676\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/03\/FM-RgEqWUAAOGVZ.png 864w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/03\/FM-RgEqWUAAOGVZ-300x235.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/03\/FM-RgEqWUAAOGVZ-768x601.png 768w\" sizes=\"(max-width: 864px) 100vw, 864px\" \/><figcaption id=\"caption-attachment-222868\" class=\"wp-caption-text\">Source: <a href=\"https:\/\/twitter.com\/EdnStuff\/status\/1499577184364679172\">@EdnStuff on Twitter.com<\/a><\/figcaption><\/figure>\n<\/div>\n<h2>What's the deal with JPMorgan?<\/h2>\n<p>Despite JPMorgan CEO <a href=\"https:\/\/www.cnbc.com\/2021\/10\/11\/jpmorgan-chase-ceo-jamie-dimon-says-bitcoin-is-worthless.html\">Jamie Dimon<\/a> calling Bitcoin &#8220;worthless&#8221; just five months ago, that hasn't stopped the firm from trying its hand with crypto. For example, in creating its own payment token in the <a href=\"https:\/\/www.jpmorgan.com\/solutions\/cib\/news\/digital-coin-payments\">JPM Coin<\/a>, which hasn't had an update in a while. As well as its plans to become the <a href=\"https:\/\/www.jpmorgan.com\/content\/dam\/jpm\/treasury-services\/documents\/opportunities-in-the-metaverse.pdf\">first lender<\/a> in the MetaVerse.<\/p>\n<p>Covering all bases, the New York-headquartered megabank has also gone down the route of partnering with established crypto firms.<\/p>\n<p>For example, ConsenSys bought the JPMorgan-built blockchain <a href=\"https:\/\/www.reuters.com\/article\/us-jpmorgan-consensys-quorum-idUSKBN25L1MR\">Quorum<\/a> in August 2020 for an undisclosed fee. And April 2021 saw a consortium, including JPMorgan, invest <a href=\"https:\/\/www.reuters.com\/technology\/blockchain-firm-consensys-raises-65-million-jp-morgan-others-2021-04-13\/\">$65 million<\/a> in ConsenSys.<\/p>\n<p>But the relationship between ConsenSys and JPMorgan is deeper than that. A group of 35 ConsenSys shareholders has demanded a &#8220;<a href=\"https:\/\/www.prnewswire.com\/news-releases\/blockchain-company-consensys-faces-multi-billion-dollar-audit-as-shareholders-claim-board-breaches-fiduciary-duties---attributed-to-arthur-falls-301493433.html\">special audit<\/a>&#8221; of the 2020 deal, which saw JPMorgan acquire a stake in MetaMask and Infura.<\/p>\n<p>It's alleged the ConsenSys Board had breached its fiduciary duties by approving the deal at the detriment of minority shareholders. As a result, the group is seeking to void the agreement.<\/p>\n<blockquote><p>&#8220;fundamental intellectual property and subsidiaries were illegally transferred from CAG into a new entity, ConsenSys Software Incorporated (CSI).&#8221;<\/p><\/blockquote>\n<p>With JPMorgan deeply embedded in the Ethereum ecosystem, is it time to admit ETH isn't run for our benefit?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>MetaMask users in Iran and Venezuela reported problems with completing transactions yesterday. It later emerged that affected users were deliberately blocked for &#8220;legal compliance&#8221; reasons. This is possible because MetaMask uses an API or gateway service through Infura. Like MetaMask, Infura is also owned by Ethereum developers ConsensSys, following its acquisition in October 2019. &#8220;Infura [&hellip;]<\/p>\n","protected":false},"author":460,"featured_media":223023,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,38],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Ethereum blasted as &quot;trojan horse for tyranny&quot; following MetaMask scandal<\/title>\n<meta name=\"description\" content=\"MetaMask shoots itself in the foot by blocking &quot;certain jurasdictions,&quot; a dig deeper reveals the Ethereum ecosystem is in bed with JPMorgan.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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