Uniswap Cleared of Legal Action in Dismissed Class Action Lawsuit


A US court has dismissed the class action lawsuit against Uniswap, a crypto platform. The suit alleged that Uniswap users lost money as a result of scams on the platform. However, Judge Katherine Polk Failla of the US District Court for the Southern District of New York ruled that one cannot sue the software provider for crimes committed by third parties.

In her ruling, Judge Failla noted that the identities of the scammers were unknown and unknowable, leaving plaintiffs with an identifiable injury but no identifiable defendant. The lawsuit, which had named Uniwap founder Hayden Adams and VC backers Andreessen Horowitz and Paradigm as defendants, also alleged that Uniswap had sold unregistered securities.

In response to the ruling, Uniswap’s chief legal officer Marvin Ammori said via Twitter, “Another huge victory for the crypto world & software devs. SDNY court tossed out a class action against us, deciding that the “self-driving” Uniswap protocol has primarily *lawful* use & protocol devs aren’t liable when others misuse it. The trend in courts is obvious.”

The decision is the latest in a series of court decisions that show a growing clarity in the broader crypto ecosystem. Recent wins for crypto companies include those of Ripple Labs and Grayscale Investments, both involving the US Securities and Exchange Commission (SEC).

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