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Decentralized trading platform Uniswap faces lawsuits over unregistered offers

Decentralized trading platform Uniswap faces lawsuits over unregistered offers

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Answer Decentralized trading platform Uniswap faces lawsuits over unregistered offers

It looks like there are hard days ahead for Uniswap.

Recently, a US citizen filed a lawsuit against the decentralized trading platform “Uniswap”, after this citizen, “Nissa Risley” from North Carolina, invested about $10,400 on low-value digital tokens such as:

“EthereumMax”, “Matrix Samurai” and “Rocket Bunny”.

Which was available for trading on the decentralized trading platform “Uniswap” between May and July of last year.

Since then, she has suffered heavy losses and has therefore sought justice through legal action.

On April 4, Risley filed for legal action, alleging that Uniswap failed to perform identity checks and did not impose restrictions on securities offered by fraudsters who use the platform to list scam-like digital tokens to conduct large-scale thefts.

Read:The launch of the Upex platform for buying and selling cryptocurrencies against the Saudi riyal

Uniswap accused of selling unregistered securities:

In addition to the aforementioned lawsuit, two US law firms have sued Uniswap, suing it and its backers, including popular venture capital firms such as A16z and Paradigm, for violating securities laws by offering and selling securities. In the form of digital codes.

The lawsuit, filed by Kim & Serritella LLP and Barton LLP, aims to invite victims like Risley, who have lost money since last April at Uniswap, to join a class action lawsuit against the platform’s founders and developers.

They told the lawsuit that Uniswap failed to disclose registration data, including information about the risks of investments associated with the securities they were selling to users.

Additionally, the class action states that Uniswap Labs allowed illegal activities such as “pumping and dumping” and “rug-pull scams” ​​to occur on its platform.

One of the main accusations targets the platform’s fee structure, which, according to the statement, encourages fraud by paying a portion of the fee to liquidity providers for each trade.

The statement added that Uniswap collects fees for developers, with the ability to keep a portion of those fees for itself.

Read:DEC raises $9 million in seed funding to create a decentralized competitor to Uber

Assign the SEC to “Uniswap”:

The above lawsuit is not the first to be directed against the decentralized trading platform “Uniswap.” Last September, the Securities and Exchange Commission opened an investigation against “Uniswap Labs,” as the largest securities watchdog in the United States was trying to determine how customers use the platform, how it is marketed, and how It generally works.

Previously, Securities and Exchange Commission Chairman Gary Gensler has outlined concerns about DeFi protocols that he believes can be categorized as the types of entities the Commission oversees.

Read also:

Blockchain companies represent 16% of free zone company registrations in the UAE during 2022

Dubai and the trend towards the cryptocurrency market…Accelerating steps to catch up with the summit


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