The post Uniswap lawsuit narrows liability for open DeFi platforms appeared on BitcoinEthereumNews.com.

A long-running court battle over the uniswap lawsuit has ended in New York, closing a key test of liability for open crypto trading protocols. Judge Failla dismisses final claims against Uniswap Labs A federal judge has dismissed the remaining state law claims against Uniswap Labs and its founder Hayden Adams, ending a four-year class action over scam tokens traded on the protocol. Judge Katherine Polk Failla issued the ruling on Monday in Manhattan federal court, dismissing the second amended complaint with prejudice, which means the plaintiffs cannot refile the case. The plaintiffs sought to hold the decentralized exchange responsible for losses tied to rug pulls and pump and dump schemes. They argued that the Uniswap protocol enabled fraudulent token issuers to reach investors at scale. However, the court found those arguments insufficient under state consumer protection laws and concluded that the pleadings did not meet the required legal standard. Judge Failla held that the plaintiffs failed to plausibly allege that Uniswap had knowledge of specific fraudulent activity. Moreover, she found no evidence that the company substantially assisted any deceptive scheme. The ruling reinforces the distinction between operating an open protocol and actively participating in misconduct. Court rejects theory of DEX platform liability The case, led by class representative Nessa Risley, began in April 2022 and initially included federal securities law claims. In August 2023, Judge Failla dismissed those federal claims, a decision later upheld by the Second Circuit on appeal. The appellate court then remanded the remaining state law claims for further review, and Monday’s ruling resolves that final portion of the dispute. In her opinion, Judge Failla stressed that creating an open trading platform does not automatically amount to assisting fraud. She noted that the plaintiffs did not plausibly allege actual knowledge of any particular deceptive conduct. Additionally, the…

---

Filed under: News - @ March 3, 2026 3:29 pm