The U.S. Court of Appeals for the Second Circuit has upheld a lower court's decision to dismiss a class-action lawsuit against decentralized exchange Uniswap. The suit, filed by a group of investors in 2022, alleged that Uniswap Labs was responsible for allowing scam tokens to be issued on its platform. District Court Judge Katherine Polk Failla sided with Uniswap in 2023, comparing the plaintiffs' arguments to holding an application like Venmo liable for a drug deal facilitated through the platform. The Second Circuit affirmed Failla's decision to dismiss the claims under both the Securities Act and the Exchange Act, stating that a smart contract's creator cannot be held liable for a user's misuse of the platform. The only part of the ruling that was sent back to a lower court were the state law claims. This ruling comes after the U.S. Securities and Exchange Commission (SEC) announced on Tuesday that it would drop its investigation into Uniswap.



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