Judge Hands Win to Uniswap in Class Action Over Scams
A judge dismissed a class action lawsuit against Uniswap and its founder regarding scam tokens traded on the platform.Summary
Manhattan federal judge Katherine Polk Failla dismissed with prejudice a class action lawsuit against Uniswap Labs and founder Hayden Adams, concluding a four-year legal battle. The suit alleged Uniswap was liable for scam cryptocurrencies, including "rug pulls and pump and dump schemes," traded on its decentralized exchange. This was the second attempt by the class group, led by Nessa Risley, to sue, following an earlier dismissal upheld on appeal. Judge Failla ruled that the plaintiffs failed to adequately allege that Uniswap "had knowledge of the fraud and substantially assisted in its commission." She stated that merely creating an environment where fraud could occur is insufficient to establish liability, comparing it to how a bank is not liable for a money launderer using its accounts or how WhatsApp is not liable for a drug dealer using its service. Uniswap founder Hayden Adams celebrated the ruling as a "good, sensible outcome" that sets a precedent for open-source developers.
(Source：Cointelegraph)