US Judge Throws Out Lawsuit Against Uniswap Over Scam Token Woes

A United States District Judge has rejected a lawsuit brought forth by a group of investors against Uniswap. The group blames Uniswap for their losses because the scam tokens they allegedly bought were on the decentralized protocol.

She declared that the current state of cryptocurrency regulations doesn’t provide a basis for their case.

Victims Remain Unprotected Amid Regulatory Absence

In a recent court filing, United States District Judge Katherine Failla quashes a group of six investors’ claim against Uniswap.

It clarifies that the investors bought various tokens on the protocol between December 2020 and March 2022. The investors reside all across the world, from North Carolina and Idaho, to New York, North Carolina and Australia.

“The court dismisses the complaint in full,” the court filing declares, as it explains that just because the investors bought the scam tokens on Uniswap, does not mean the decentralized protocol itself is liable:

“Due to the Protocol’s decentralized nature, the identities of the Scam Token issuers are basically unknown and unknowable, leaving Plaintiffs with an identifiable injury but no identifiable defendant.”

To learn how to protect yourself against crypto scams, read BeInCrypto’s guide: 15 Most Common Crypto Scams To Look Out For

Judge Failla cites the lack of regulatory clarity in the crypto industry does not help their case in retrieving funds:

“Undaunted, they now sue the Uniswap Defendants and the VC Defendants, hoping that this Court might overlook the fact that the current state of cryptocurrency regulation leaves them without recourse, at least as to the specific claims alleged in this suit.”

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