- A U.S. court dismissed the scam token lawsuit against Uniswap Labs, ruling no fraud involvement.
- The case strengthens protections for decentralized platforms.
A U.S. federal court has officially dismissed a long-running class action lawsuit accusing Uniswap Labs of facilitating scam token trading on its decentralized protocol. After four years of litigation, the plaintiffs’ claims were dismissed with prejudice, marking a major legal victory for the crypto platform and its founder, Hayden Adams.
Court Cites Lack of Evidence Against Defendants
The case, filed in the Southern District of New York, saw Judge Katherine Polk Failla rule that the plaintiffs failed to show that Uniswap Labs or Adams knew about any fraudulent activity. The judge also found no evidence that the defendants had aided or substantially assisted in the alleged scams.
The lawsuit initially alleged that Uniswap functioned as a marketplace for scam tokens, earning transaction fees in the process. Plaintiffs argued that by enabling token trades through smart contracts, Uniswap and Adams acted as unregistered broker-dealers. However, the court found these claims unconvincing, as the identities of the scam token issuers were unknown and the protocol itself did not sell the tokens.
Multiple Attempts to Hold Uniswap Accountable
The plaintiffs first filed their complaint and a first amended complaint in 2022, outlining 14 claims against Uniswap, Adams, and other defendants. By August 2023, the court dismissed the case under federal securities laws, and the plaintiffs’ appeal to the Second Circuit in February 2025 was only partially successful, allowing them one more chance to amend their complaint.
The second amended complaint, submitted in May 2025, shifted focus to state-law violations. By then, all defendants except Uniswap and Adams had been dismissed. Despite this, the court concluded that the plaintiffs still failed to present plausible claims against the company. Judge Failla emphasized that even after three attempts, the allegations lacked sufficient legal grounding.
Implications for Decentralized Platforms
This dismissal sets a precedent for decentralized finance (DeFi) platforms, reinforcing the idea that protocol developers are not automatically liable for the actions of anonymous users. Uniswap’s win highlights the legal complexities surrounding DeFi operations and the limits of applying traditional securities laws to decentralized systems.
With this ruling, Uniswap Labs and its founder can now focus on innovation and protocol development without the overhang of this extensive legal battle. For the crypto industry, it serves as a reminder that legal clarity in decentralized markets is still evolving, and protections for platform operators are likely to strengthen.
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