ConsenSys is a DeFi enterprise based on the Ethereum network. The company has recently confessed that it has been collecting the IP addresses of the digital wallet accounts.

The shocking declaration has further revealed that the personal information of the users was getting collected from the Ethereum wallet project MetaMask, which is related to a blockchain named Infura.

The update has been added to the privacy policy section of ConsenSys. It is important to note that Metamask and Infura, both cryptocurrency enterprises are under the ownership of ConsenSys. Infura performs the task of collecting nodes from users and digital wallet addresses.

MetaMask Users have to Compromise their Personal Information

The dissection of the privacy policy revelation suggests that whenever cryptocurrency investors make a transaction using MetaMask wallet, it defaults to the Infura channel.

In turn, Infura takes the transactions to the Ethereum blockchain. The connecting protocol between MetaMask and Infura is named remote call procedure service or RPC.

It means that cryptocurrency investors are making all transactions using the Infura channel by default settings in the MetaMask RPC.

The Infura protocol can collect the IP address of the transaction maker and also make a record of their Ethereum wallet address for each transaction as per ConsenSys.

The firm has cleared that if users choose alternative transaction channels such as Ankr, Alchemy, and others, it means that their data will remain secure.

The main concern for cryptocurrency investors is that the protocols can collect their personal information, such as wallet addresses, transaction details, off-chain stats, and IP addresses.

In case this data is accessed by hackers or demanded by a centralized government authority, it can be incriminating for the users.

MetaMask founder Dan Finlay has posted on Twitter that MetaMask is not making use of the collected IP addresses. He claims that they are only temporarily stored, and he said that the issue could be solved soon enough.

ConsenSys is headed by Joseph Lubin, one of the former Ethereum co-founders. The firm is considered to be a unicorn based on its $450 million series D funding that was concluded at a $7 billion market cap in January 2022.