Uniswap's "fraudulent token" class-action lawsuit was dismissed in its entirety; the court ruled that the developers are not responsible for misuse by third parties.

U.S. District Judge Katherine Polk Failla of the Southern District of New York dismissed the remaining state law claims against Uniswap Labs and its founder Hayden Adams, closing the case with a "with prejudice" ruling. The court found that the plaintiffs, despite multiple amendments to their complaint, failed to present a tenable claim and could not hold the platform liable for the third-party token issuer's "rug pull" and pump-and-dump scheme. The court noted that merely providing decentralized protocols and smart contract code to match buyers and sellers does not constitute material assistance in fraudulent activities, and the plaintiffs failed to reasonably prove that the defendants had actual knowledge of the fraud, violated state consumer protection laws, or engaged in unjust enrichment. (The Block)