## Uniswap Wins Dismissal of Class Action Lawsuit
Uniswap Labs and its founder Hayden Adams have successfully defeated a class action lawsuit that attempted to hold them liable for fraudulent cryptocurrencies traded on the Uniswap protocol, bringing a four-year legal battle to an end. Manhattan Federal Judge Katherine Polk Failla dismissed the suit with prejudice, ruling that the class group cannot hold Uniswap liable for misconduct committed by unknown third-party token issuers. This marked the class groups second attempt to sue Uniswap, as they amended their complaint in May to focus on state-level consumer protection violations, arguing that Uniswap facilitated rug pulls and pump-and-dump schemes. The group, led by Nessa Risley, initially filed suit against Uniswap, Adams, and venture capital firms Paradigm, Andreessen Horowitz, and Union Square Ventures in April 2022. That lawsuit was dismissed in August 2023, with the decision later upheld on appeal. Adams celebrated the ruling on social media, describing it as a good, sensible outcome that establishes important legal precedent. He emphasized that open source developers should not be held liable when their code is misused by scammers. The court found that the plaintiffs failed to adequately allege that Uniswap had knowledge of the fraud or substantially assisted in its commission. The judge noted that merely creating an environment where fraud could exist is not the same as affirmatively assisting in its perpetration. The ruling follows similar reasoning to cases involving banks and messaging platforms, where simply providing a platform used for illegal activities does not constitute substantial assistance to fraud.
---
- **Source**: 
- **Sector**: The Vault
- **Tags**: uniswap, class action, legal, defi, cryptocurrency
- **Credibility**: unverified
- **Published**: 2026-03-03 05:48:28
- **ID**: 1627
- **URL**: https://whisperx.ai/en/intel/1627