According to The Block, Judge Katherine Polk Failla of the U.S. District Court for the Southern District of New York dismissed all state law claims against Uniswap Labs and its founder, Hayden Adams, on Monday, bringing an end to the long-running litigation. The judge ruled that Uniswap should not be held liable for "rug pulls" and "pump-and-dump" scams carried out by third-party issuers on its platform. The court reaffirmed that merely providing a trading platform does not constitute substantial assistance in fraud, stating that holding developers of smart contract code responsible for abuses on a decentralized platform "defies logic." Uniswap Labs’ General Counsel, Brian Nistler, called this another "groundbreaking" ruling in the DeFi space. Founder Adams emphasized: "If open-source smart contract code is used by scammers, the scammers—not the open-source developers—should be held accountable."
Uniswap Wins Full Legal Victory in Fraudulent Token Lawsuit, Establishes Precedent for DeFi Developer Liability
TechFlowShare
Summary
A U.S. federal judge in the Southern District of New York dismissed all state law claims against Uniswap Labs and founder Hayden Adams, ruling that the platform is not liable for fraud committed by third-party token issuers. The court stated that providing a trading platform does not constitute aiding fraud, noting it would be illogical to hold smart contract developers responsible for misuse. Uniswap’s General Counsel called the decision a landmark for DeFi, with Adams emphasizing that scammers—not developers—should be held accountable. The ruling comes amid global regulatory scrutiny, including the EU’s MiCA framework and CFT measures.
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