Anyone who has lost money on Uniswap, (a decentralized exchange that has seen the trade of cryptos like BTC and ETH and anticipates new projects like Nature Vault since April is encouraged to join a class action lawsuit against the exchange’s architects and investors for failing to combat “rampant fraud.” Nessa Risley of North Carolina filed a lawsuit on April 4 stating that the decentralized exchange’s absence of identity checks and securities limitations allow fraudsters to advertise “thousands of scam tokens” linked to rug pulls, pump and dumps, and Ponzi schemes.
Furthermore, the case, filed by US law firms Barton LLP and Kim & Serritella LLP, claims that Uniswap’s fee structure encourages fraud by providing guaranteed fees to liquidity providers for every trade. Investors, on the other hand, were “left to fend for themselves,” according to the report.
Between May and July of last year, Risley spent around $10,400 on low-cap altcoins. During the same time span, the whole crypto market cap dropped by half. EthereumMax, Matrix Samurai, Rocket Bunny, Alphawolf Finance, Bezoge Earth, and BoomBaby coins have all suffered “significant losses,” according to Risley. Uniswap Labs, its creator Hayden Adams, and investors A16z, Paradigm, AH Capital Management, and Union Square Ventures are all being sued by Risley.
They were accused of aiding and abetting Uniswap’s “failure to register as an exchange or broker-dealer,” as well as selling unregistered securities, according to the lawsuit.