“Developers can embed a Uniswap trading window in any app with one line of code, while a class action lawsuit alleges the exchange promotes unregistered securities”
-Blockworks Contributor Macauley Peterson
In English: At one point or another we’ve fussed around with some coin or another, and they make the incredible remark “We’re now on UniSwap!”. I hate to be the bearer of bad news, but that’s not exactly a hard feat to accomplish if you’re familiar with code.
There’s a reason wallets, exchanges, etc have taken the precaution to remind you that you should be double checking the actually underlying assets contract address. I’ll provide an example below:
(We’ll be using ERC in my example so excuse the BSC pictures)
Typically the scam coin will have developed some sort of source code allowing them to (let’s say the coin you think you’re getting is an ERC-20 type) - they’ll ensure they do the same thing. It’ll raise a flag if you’re inputting the token code and it starts with a 1 or a b (indicating Bitcoin or BSC).
MOVING FORWARD: THE LAWSUIT
“Two U.S. law firms have invited anyone who lost money on Uniswap since last April to join a class action suit against the exchange’s developers and investors for failing to crack down on “rampant fraud”.
On April 4, Nessa Risley of North Carolina filed a lawsuit alleging that the decentralized exchange’s lack of identity checks and securities restrictions lets fraudsters list “thousands of scam tokens” associated with rug pulls, pump and dumps, and Ponzi schemes on the platform.
More than that, the lawsuit, filed by US firms Barton LLP and Kim & Serritella LLP, alleged that Uniswap’s fee structure encourages fraud by paying liquidity providers guaranteed fees for every trade. Meanwhile, investors “were left to fend for themselves,” it says.” - Samuel Haig, Yahoo Finance
“The Action alleges that Uniswap and the other Defendants violated the securities laws by offering and selling unregistered securities in the form of digital tokens on the Uniswap exchange, including Uniswap’s own token, UNI. The Action further alleges that the Defendants violated the securities laws because the Defendants failed to register Uniswap under applicable securities laws as an exchange and/or broker-dealer and failed to provide investors with registration statements for the securities they were offering and selling, which would have apprised investors of the risks and other important information associated with their investments.” - BusinessWire
Provided is a detailed explanation of the lawsuit. I will be looking further into this as it will affect most if not all of “unregulated” cryptocurrency in the US. Which I understand is ironic but will become a situation such as China (possibly worse) where mining would become a jail-able offense.
- BusinessWire
After taking a look at the Actual Lawsuit I’m a tad worried considering Ethereum and a TON OTHERS are on the board. It is convenient this is happening as the argument for decentralization becomes more and more promising, arguably required.
I’ll be updating as this develops, we all know UniSwap is not small. And it’s quite a large lawsuit. Stay tuned folks
Please don’t forget to tip and follow so you can (a) help me feel this is worth my time and (b) know that I’m actually doing something for people, hopefully helping. Provided are the websites I used to help make this article.
also forgive me but I’ll be posting later this evening about being in a sober living house, asking for donations on food, better earphones so I don’t have to listen to the crazy people they put in here, ESPECIALLY CLOTHES. I plan on providing a way to provide receipts for folks who do/don’t want to know forsure where the money is going. I’ve been sober for about 1.5 years now, going strong, and unfortunately some family drama and a car being stolen with no insurance (yes I know I’m dumb, COVID ruined me). Anyways anything helps. And yes I am considered homeless, any money now is going towards interview clothes and food.
BTC: bc1q2ssl7x5wm3jak6prnw6nwjd6k42wprsavlptpj
ETH/ERC20:
0x7E855617472a683837F5e130ddd8932e13405688
LTC: ltc1q6cy55n38fwwmm0utsf7lsh672twc0yyyp3tytr
SOL: CkMbFcobeD4EsnPxJtLX3cJchmfMfEeZJ2vCPDh1eHf
