The US Court of Appeals for the Second Circuit released a decision On Wednesday, it was mainly consistent with the 2023 decision of a lower court to throw an action suit on the class against the decentralized exchange of exchanges.
A group of investors originally filed the Uniswap Labs, the company behind the decentralized protocol of the same name, and some of the capital investors in 2022, claiming the company is responsible for damaging investors by allowing scam tokens to be released in its protocol.
District District Judge Katherine Polk Filla of the Southern District of New York (SDNY) Working with Uniswap in 2023 and that -Scrap the suit Before it went to the trial, the plaintiff’s arguments would be compared to “a suit that attempts to handle an application such as Venmo or Zelle responsible for a drug deal that used the platform to facilitate a fund transfer.”
Plaintiffs Appeal Filla’s decision in September 2023, but mainly closed a fresh decision from the second circuit on Wednesday. Second circuit judges confirmed Failla’s decision to dispose of the claims of plaintiffs under both the Securities Act and the Exchange Act, writing:
“In sum, we agree with the court of this district that ‘objected to logic’ that a draft of a smart contract, a computer code, can be performed under the exchange act for the third party’s platform’s users’ misuse of the platform,” the reading of the filing.
The only part of Filla’s decision to be vacant and restored to a district court – meaning the lower court will hear this sliver of the plaintiff’s case – is the state law, which is important to seek to test similar allegations under the state, rather than federal law, in New York, North Carolina and Idaho.
Decision is a win for Uniswap, fresh on the heels of Tuesday’s announcement that the US Securities and Exchange Commission (SEC) will lower its investigation into decentralized exchanges that, under former SEC Chairman Gary Gensler, has been tested for alleged operations as an unregistered Securities Broker and non -registered Securities Exchange, as well as a Securities Exchange security.
Read more: SEC has lowered the investigation into Uniswap, will not file an action on implementation
