Court Dismisses Class Action Lawsuit Against Uniswap

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The Southern District of New York court dismissed a class action lawsuit against Uniswap Labs, its CEO Hayden Adams, the Uniswap Foundation and venture investors of the decentralized exchange.

The suit, which had been filed by user group leader Nessa Risley, accused the aforementioned defendants of breaking securities laws, resulting in losses for plaintiffs.

The complaint blamed the platform and other defendants for inappropriately offering and selling unregistered securities in the form of digital assets, like the UNI governance token, in addition to other charges. Investors also alleged that Uniswap Labs had not taken sufficient measures to prevent rug-pull and pump & dump schemes on various tokens.

Judge Katherine Polk Failla stated that, due to the decentralized nature of the platform, it was difficult to identify the issuers of scam tokens, resulting in “identifiable damages but no identifiable defendant.”

She added that while plaintiffs may feel the current state of cryptocurrency regulation leaves them no place to seek help, this does not qualify as a valid excuse to accuse Uniswap of such mistakes.

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