U.S. Judge Dismisses State-Law Class Claims Against Uniswap Over Alleged Fraud Tokens

A U.S. federal court dismissed the remaining state-law claims in a class action lawsuit against Uniswap Labs and founder Hayden Adams over alleged fraudulent tokens traded on the protocol, The Block reports. U.S. District Judge Katherine Polk Failla of the Southern District of New York issued an order on March 3 dismissing the plaintiffs' second amended complaint with prejudice, finding the company cannot be held responsible for misconduct by unidentified third-party token issuers. Uniswap Chief Legal Officer Brian Nistler said the ruling sets an important precedent for the DeFi sector, confirming developers are not liable for illegal activities carried out by third parties using open-source code.