- Uniswap has been accused of allowing the listing of unregistered tokens.
- It is facing lawsuits from two law firms.
The regulators have been keeping an eye on the crypto market to save people from frauds and scams. Incidents of selling unregistered digital tokens happened earlier this month. Recently, Uniswap, the DeFi giant, has been accused of a similar incident.
A user from North Carolina, Nessa Risley, experienced “substantial losses” after investing almost $10,400 on low-cap digital tokens. The tokens he invested in last year between May and July included Ethereum Max, Matrix Samurai, and Rocket Bunny. This year on April 4, he started legal proceedings charging Uniswap with failing to carry out proper security checks and impose restrictions to prevent “fraudsters” from listing tokens with the intent to exploit the user.
Uniswap is also facing lawsuits from two US law firms who have accused the decentralized exchange of “violating the securities laws by offering and selling securities in the form of digital tokens.” The platform has also failed to reveal statements that confirm the registration of the tokens.
The future of the exchange platform is in danger as it is also facing allegations of allowing illicit activities on its platform like “pump and dump” and “rug pulls”. Customers are losing their trust, and many have already stopped investing in the platform.