The United States District Court for the Southern District of New York has dismissed a class action lawsuit against Uniswap, its CEO, and its venture capital backers. The suit was brought by six individuals who bought what they alleged were scam tokens on Uniswap between December 2020 and March 2022. The plaintiffs claimed they lost money on liquidity pools controlled and created by Uniswap smart contracts.Judge Katherine Polk Failla stated that neither Uniswap nor the plaintiffs knew the identities of the scammers who issued the fake tokens. Moreover, she said that Ethereum is a commodity, not a security. The judge said that the case had nothing to do with securities laws and that the plaintiffs’ concerns should be addressed to Congress.Observers and industry advocates commented that this shows a deep understanding of the decentralized finance (DeFi) ecosystem. Stephen Palley, a partner at Brown Rudnick, said that this case touches on issues such as foreseeability of harm, responsibility for third party misuse and third party damage. ConsenSys lawyer Bill Hughes said that this decision more directly impacts the application of current securities laws to DeFi than the Ripple or TerraForm Labs cases.Uniswap token prices dropped a further 3% on the day, trading at $4.62 at the time of writing. The DEX token has lost 15% over the past fortnight and remains 90% down from its May 2021 all-time high of $44.92.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | Bill Hughes, Stephen Palley, Katherine Polk Failla |
| Companies | Binance, ConsenSys, SEC, Brown Rudnick, Coinbase, Uniswap |
| Currencies | Ethereum, Bitcoin, US Dollar, Uniswap |
| Securities | None |
