Earlier this week, a new class-action lawsuit was filed against Uniswap for claims alleging that it was selling unregistered securities, and failed to disclose those risks to its users.
Currently, there are two U.S. lawsuits, including VC firms A16z and Paradigm that have been filed against the DEX.
The first lawsuit, filed on April 4 by crypto investor, Nessa Rixley (North Carolina), alleges that she has experienced “substantial losses” as a result of her $10,400 investment in low-cap digital assets such as EthereumMax, Matrix Samurai, and Rocket Bunny between May and July of last year.
She claims that Uniswap failed to conduct identity checks and impose securities restrictions on “fraudsters” who use the platform to list scam-like digital tokens for conducting mass fraud. Risley is represented by Barton LLP and Kim & Serritella LLP.
Other parties joined in the lawsuit include its founder, Hayden Adams, and backers such as Andreessen Horowitz, Paradigm, Union Square Ventures, and AH Capital Management. The lawyers claim the backers were aiding and abetting Uniswap’s “failure to register as an exchange or broker-dealer.”
Although they’re yet to certify a class, the aim is to attract other people who invested and lost their money on Uniswap. It stated that the protocol didn’t disclose the risks of associated investments for the securities.
Did Uniswap allow for “rug pulls?”
The class action also claims that Uniswap allowed “rug pulls” and…
