Summary: Infura temporarily stores IP addresses of MetaMask users, according to the blockchain firm. ConsenSys shared this information via an update of the company’s privacy policies. Uniswap, a decentralized exchange, also updated its privacy policy to include offchain data collection. ConsenSys, a company that develops Ethereum-centered products, informed users that it collects IP addresses from MetaMask customers. ConsenSys’s privacy update on November 23 explained that Infura, a ConsenSys-built service, collects and stores IP addresses.

  

Summary:
The blockchain firm said Infura collects IP addresses from MetaMask users and temporarily stores the data.ConsenSys shared the news via an update to the company’s privacy policy.Decentralized exchange Uniswap also tweaked its privacy policy to include off-chain data collection.ConsenSys, a blockchain product company building Ethereum-centered solutions, told users that the company collects IP addresses from MetaMask users. ConsenSys’ Infura service, which was updated on November 23, explained how it collects and stores IP addresses.
Infura provides the decentralized nodes necessary to run crypto wallets. MetaMask, a popular Ethereum wallet, was launched in 2016. Both products are owned and operated in sync by ConsenSys.
MetaMask was designed to select Infura as its default transaction broadcaster. Remote call procedure technology (RPC) is used to connect the wallet to Infura. This means that users can send ERC tokens via MetaMask to Infura, and Infura links the transaction with Ethereum’s blockchain.
Infura retrieves and stores the IP address associated with MetaMask users in its off-chain data collection policy.
Privacy concerns raised by ConsenSys updates and Uniswap
According to the firm, it does not collect data from users who use other RPC service providers. Third-party RPC firms may have access to the same data.
While MetaMask founder Dan Finlay stated that the wallet does NOT collect IP data, users raised concerns about the privacy risks associated with such policies. Theoretically, IP data and on-chain data could be combined to track and dox individuals.

This can be fixed quickly, I believe. We don’t use IP addresses, even if they are temporarily stored. They aren’t needed as they aren’t being used for anything. – Dan Finlay (@danfinlay), November 24, 2022
Similar concerns were raised in November when Uniswap updated their privacy policy to include off chain data such as device type and browser version.