Uniswap Wins Dismissal of Class Action Over Alleged Crypto Rug Pulls

A federal judge has dismissed a long running class action lawsuit against Uniswap Labs and its founder Hayden Adams, ruling that the decentralized exchange cannot be held responsible for fraudulent tokens created by third parties.

Judge Katherine Polk Failla of the Manhattan federal court dismissed the case with prejudice, effectively ending the four-year legal battle. The lawsuit alleged that Uniswap facilitated so-called “rug pulls” and pump-and-dump schemes by allowing scam tokens to be traded on its platform.

The plaintiffs, led by Nessa Risley, had previously filed suit in 2022, naming Uniswap, Adams, and several venture firms. That complaint was dismissed in 2023 and later upheld on appeal. A revised complaint filed in 2024 focused on state-level consumer protection claims but ultimately failed to convince the court.

Court Emphasizes Platform Neutrality in Fraud Claims

In her ruling, Judge Failla stated that the plaintiffs did not sufficiently demonstrate that Uniswap had knowledge of fraudulent conduct or substantially assisted in it. She noted that providing a platform capable of lawful and unlawful use does not equate to direct participation in fraud.

Adams described the decision as a sensible outcome, arguing that open-source developers should not be held liable for how independent actors use publicly available code.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.