A US federal judge has finally dismissed a class action lawsuit against Uniswap Labs and its founder Hayden Adams, ending a four-year legal battle over fraudulent tokens sold through the protocol. Uniswap.
Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York ruled that Uniswap Labs cannot be held liable for fraud committed by unknown third-party token creators. The court ruled, dismissing the second amended complaint with a preliminary hearing. This means that a re-filing of this case is impossible.
As a reminder, the trial began in 2022, when a group of investors claimed they lost money due to so-called «scams» and «pump-and-dumps.» They claimed that Uniswap facilitated fraud by providing a platform for token trading.
In her ruling, the judge stated that simply providing a platform for trading does not make her responsible for the actions of other users. She also noted that the prosecutor’s charges essentially boiled down to Uniswap facilitated fraudulent transactions by matching buyers and sellers. The judge added that the court does not consider the allegations sufficiently substantiated to impose sanctions on the DEX platform.
Founder Uniswap Hayden Adams responded to the court’s decision, calling it a new legal precedent and a reasonable outcome.