TechFlow News, March 3: According to The Block, on Monday, U.S. District Judge Katherine Polk Failla of the Southern District of New York dismissed all state-law claims against Uniswap Labs and its founder, Hayden Adams, bringing an end to this protracted litigation. The judge ruled that Uniswap should not be held liable for “rug pulls” and “pump-and-dump” scams carried out by third-party token issuers on its platform.
The court reaffirmed that merely providing a trading platform does not constitute substantial assistance in fraud, and held that holding developers of smart contract code accountable for abuses of decentralized platforms is “illogical.”
Brian Nistler, General Counsel of Uniswap Labs, called this “another landmark” ruling for the DeFi space. Founder Adams emphasized: “If malicious actors misuse open-source smart contract code, responsibility lies with those bad actors—not with the open-source developers.”
