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The Uniswap community cheered positive news after the judge dismissed a class action suit against the decentralized exchange. The victory comes after several legal proceedings and an evaluation of the protocol’s regulatory compliance.
Another day, another nice court citation for crypto!
— Larry Florio (@larryflorio) August 30, 2023
Today, the class action lawsuit against @Uniswap and others was dismissed
Why? In part because misuse of software doesn't itself create liability for the devs pic.twitter.com/PAXTbgg51a
Details about Uniswap’s class action lawsuit
Uniswap faced the class action lawsuit after the allegation that the DEX sold securities disguised as digital assets. The plaintiffs accused Uniswap of violating securities laws as they questioned the legitimacy of the tokens that the platform distributed.
For instance, North Carolina resident Nessa Riley claimed to have lost $10,400 invested across Matrix Samurai, Rocket Bunny, and EtehreuMax crypto projects. While her case shows how market participants are susceptible to risks, Riley claims Uniswap didn’t adequately scrutinize assets on its platform, exposing users to scammers.
Such developments had many speculating that Uniswap could be operating pump-and-dump schemes.
The court dismissed the lawsuit, stating that software misuse does not create liability for developers. Meanwhile, Uniswap’s victory might set grounds for future regulatory issues involving decentralized finance (DeFi) projects.
Bigger win than XRP?
🚨🚨🚨The SDNY yesterday threw out a class action complaint against @Uniswap alleging that they were responsible for plaintiffs being harmed in a rug pull engineered by scam token issuers.
— Bill Hughes : wchughes.eth 🦊 (@BillHughesDC) August 30, 2023
Risley v. Uniswaphttps://t.co/pP8AJ9eWag
This is big. I'm still digesting the… pic.twitter.com/iWDA3VpzM4
Bill Hughes of Consensys believes Uniswap’s ruling will have more implications in the crypto regulatory landscape than XRP’s partial victory against the SEC. Hughes supports that a trading software/crypto exchange can’t be liable for customer losses emerging from third-party token issuers.
While the legal path remains long, Uniswap’s decision favors decentralized platforms. Meanwhile, it may encourage other similar projects to defend themselves with their decentralized nature whenever they encounter legal disputes. That will challenge lawmakers to consider their strategies when monitoring this innovative industry.
The post Just in: Uniswap (UNI) class action lawsuit dismissed appeared first on Invezz.