Crypto wallet MetaMask was swept up in controversy over the weekend as a number of Twitter users shared a misinterpretation of the firm’s terms of service.
If you haven’t paid taxes, Meta Mask will hold your crypto.
Why should Ledger have all the fun?
Meta Mask joins the party now!
— Kashif Raza (@simplykashif) May 21, 2023
Some users pointed to section 4.3 of the Fees and Payment section, which seemingly implied that MetaMask reserves the right to withhold taxes where required when a user is liable to pay them.
📢 We are aware of tweets circulating with inaccurate information about ConsenSys' terms of service.
Let's clarify one thing upfront: MetaMask does NOT collect taxes on crypto transactions and we have not made any changes to our terms to do so.
This claim is false.
— ConsenSys (@ConsenSys) May 21, 2023
Consensys, the parent company of MetaMask, clarified on Sunday that the terms in this section refer exclusively to paid plans and products offered by the firm and not on-chain crypto transfers.
“For example, Infura has credit card developer subscriptions which include sales tax,” explained ConsenSys.
“Legal terminology can be complex, but it’s crucial to emphasize that this section DOES NOT apply to MetaMask or any other products that don’t involve sales tax,” they added.
Earlier this year, MetaMask made changes to the settings of users’ wallet accounts, allowing them to separate different accounts for different purposes. Before the update, all accounts tied to one user were automatically linked when connected to an on-chain application. By de-linking them, users could opt for more privacy by segregating their public-facing accounts from their private ones that facilitate DeFi degen activities.