{"id":583868,"date":"2023-08-31T12:54:12","date_gmt":"2023-08-31T11:54:12","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=583868"},"modified":"2023-08-31T12:54:21","modified_gmt":"2023-08-31T11:54:21","slug":"judge-coinbase-case-threw-uniswap-lawsuit","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/judge-coinbase-case-threw-uniswap-lawsuit\/","title":{"rendered":"Judge In Coinbase Case Threw Out Uniswap Lawsuit"},"content":{"rendered":"\n<ul><li>SDNY Judge Katherine Polk Failla ruled that the &#8220;self-driving&#8221; software Uniswap was not responsible for losses users suffered due to scams and ponzis. <\/li><li>Judge Failla who threw out the lawsuit against Uniswap, Paradigm et al also presides over SEC vs. Coinbase. <\/li><li>Crypto proponents noted the industry&#8217;s growing momentum in the court as a sign the SEC could lose against Brian Armstrong&#8217;s crypto exchange.<\/li><li>The SEC lost to Grayscale in court and was handed a partial defeat in its securities campaign against Ripple&#8217;s XRP token.<\/li><\/ul>\n\n\n\n<p>The judicial tides could be turning for crypto service providers in the U.S. like Coinbase following back-to-back court victories amid a deluge of lawsuits from financial watchdogs like the Securities and Exchange Commission and private opposers alike. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">1\/ <br><br>Huge win, long live DeFi \ud83e\udd84<br><br>One longtime fear of mine has been bad legal interpretation of our complex, technical industry<br><br>It\u2019s highly motivating to see US courts hold up arguments I\u2019ve felt deeply for years<br><br>Below are some of the most BASED  (smart) court comments <a href=\"https:\/\/t.co\/lb7ZP4pD1C\" rel=\"nofollow\">pic.twitter.com\/lb7ZP4pD1C<\/a><\/p>&mdash; hayden.eth \ud83e\udd84 (@haydenzadams) <a href=\"https:\/\/twitter.com\/haydenzadams\/status\/1696991910370411003?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">August 30, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2>Uniswap Wins Lawsuit<\/h2>\n\n\n\n<p>On August 30, SDNY Judge Katherine Polk Failla ruled in favor of decentralized exchange Uniswap. The class action lawsuit sought to hold Uniswap, Paradigm, et al responsible for users&#8217; losses and damage caused by illicit third-party actors. <\/p>\n\n\n\n<p>The lawsuit&#8217;s argument was built around losses that users incurred from investing in scam tokens and crypto Ponzi schemes traded on Uniswap. As the deployers are anonymous and difficult to trace, the aggrieved parties turned their sights to Uniswap in a bid <\/p>\n\n\n\n<p>Judge Failla said there wasn&#8217;t sufficient evidence to <a href=\"https:\/\/www.docdroid.net\/APrJolt\/risley-v-uniswap-pdf\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.docdroid.net\/APrJolt\/risley-v-uniswap-pdf\" rel=\"noreferrer noopener nofollow\">prove<\/a> that Uniswap developers should be held liable for misuse of their software.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Another huge victory for the crypto world &amp; software devs. SDNY court tossed out a class action against us, deciding that the \u201cself-driving\u201d Uniswap protocol has primarily *lawful* use &amp; protocol devs aren\u2019t liable when others misuse it. The trend in courts is obvious. <a href=\"https:\/\/t.co\/nrUyJlFhdB\" rel=\"nofollow\">pic.twitter.com\/nrUyJlFhdB<\/a><\/p>&mdash; Marvin Ammori (@ammori) <a href=\"https:\/\/twitter.com\/ammori\/status\/1696906597962776869?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">August 30, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The ruling is a major win for DeFi participants since the court ruled in favor of DeFi software and its developers. Uniswap&#8217;s case also leaves questions regarding the crackdown on Tornado Cash and developers Alexey Pertserv, Roman Storm, and Roman Semenov, all of whom were <a href=\"https:\/\/en.ethereumworldnews.com\/tornado-cash-founders-laundering-ofac\/\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/tornado-cash-founders-laundering-ofac\/\" target=\"_blank\" rel=\"noreferrer noopener\">arrested<\/a> for their ties to the crypto mixer. <\/p>\n\n\n\n<h2>Hope For Coinbase<\/h2>\n\n\n\n<p>SDNY Judge Katherine Polk Failla also presides over the SEC vs. Coinbase case in which the SEC filed securities violation claims. Coinbase CEO Brian Armstrong and Chief Legal Officer Paul Grewal both refitted the SEC&#8217;s claims, signaling the start of a lengthy litigation process. <\/p>\n\n\n\n<p>Grayscale emerged victorious over the SEC 14 months after going to court with the commission. The SEC remained adamant in rejecting Grayscale&#8217;s conversion of its GBTC fund to a spot Bitcoin ETF, citing market manipulation concerns. <\/p>\n\n\n\n<p>A trio of judges completely sided with Grayscale and <a href=\"https:\/\/en.ethereumworldnews.com\/grayscale-win-spot-bitcoin-etf-appeal-sec\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/en.ethereumworldnews.com\/grayscale-win-spot-bitcoin-etf-appeal-sec\/\" rel=\"noreferrer noopener\">ruled<\/a> against the SEC&#8217;s rejection of Grayscale&#8217;s ETF application. <\/p>\n\n\n\n<p>&#8220;The denial of Grayscale\u2019s proposal was arbitrary and capricious because the Commission failed to explain its different treatment of similar product,&#8221; said United States Court of Appeals for the DC Circuit. The ruling pointed to the SEC&#8217;s approval of Bitcoin Futures ETF, a similar product to the high-sought-after spot Bitcoin ETF. <\/p>\n\n\n\n<p>&#8220;The courts remain our last, best hope&#8221; said Coinbase CLO Paul Grewal after the news. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">3-0. Judge Rao writing for the panel. I\u2019ll say it again\u2014 they are not perfect but when it comes to protecting the rule of law, the courts remain our last, best hope . <a href=\"https:\/\/t.co\/pV21BM317w\" rel=\"nofollow\">https:\/\/t.co\/pV21BM317w<\/a><\/p>&mdash; paulgrewal.eth (@iampaulgrewal) <a href=\"https:\/\/twitter.com\/iampaulgrewal\/status\/1696550743292141590?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">August 29, 2023<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>SDNY Judge Katherine Polk Failla ruled that the &#8220;self-driving&#8221; software Uniswap was not responsible for losses users suffered due to scams and ponzis. Judge Failla who threw out the lawsuit against Uniswap, Paradigm et al also presides over SEC vs. Coinbase. Crypto proponents noted the industry&#8217;s growing momentum in the court as a sign the SEC could lose against Brian Armstrong&#8217;s crypto exchange. The SEC lost to Grayscale in court and was handed a partial defeat in its securities campaign [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":582066,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[22,2,26],"tags":[130,5530,7575],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583868"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=583868"}],"version-history":[{"count":1,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583868\/revisions"}],"predecessor-version":[{"id":583869,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/583868\/revisions\/583869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/582066"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=583868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=583868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=583868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}