Top Highlights

• A class action lawsuit brought against Uniswap was tossed out by a district judge on Tuesday, who found those associated with the decentralized exchange were not liable for so-called scam tokens that purportedly burned traders.
• The tokens in question included Matrix Samurai (MXS), Rocket Bunny (BUNNY), and Alphawolf Finance (AWF). Southern District of New York Judge Katherine Polk Failla, who dismissed the case, said the plaintiffs' “dilemma” is the pseudo-anonymous nature of those token issuers.
• Operating under the umbrella of decentralized finance, or DeFi, Uniswap is a popular example of an application that taps blockchain tech as opposed to banks. According to DappRadar, Uniswap V3 has seen $7 billion in trading volume over the past 30 days.
• “The Court declines to stretch the federal securities laws to cover the conduct alleged, and concludes that plaintiffs’ concerns are better addressed to Congress,” she wrote.
• The lack of clarity surrounding how securities laws apply to DeFi was noted by Judge Falia, referencing a warning from Securities and Exchange Commission Chair Gary Gensler in September 2021 that the class of projects “were under increased scrutiny.”

Domain