Judge Dismisses Uniswap Class-Action Suit Over Alleged Facilitation of Fraud

A Manhattan federal judge has dismissed a class-action suit against Uniswap, delivering a significant victory for the decentralized exchange's platform operators.

The decision, issued by Judge Katherine Polk Failla, holds that Uniswap's operators cannot be held liable for the misdeeds of unaffiliated third-party token issuers. The ruling emphasizes that providing an open marketplace does not equate to actively facilitating fraud or substantial assistance in fraudulent activity.

The case first landed in federal court in April 2022 and was initially dismissed in August 2023. However, the plaintiffs pursued further action, amending their complaint to sharpen their theories around consumer protection and DeFi conduct.