• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

CFTC Imposes Fine on Uniswap Labs for DeFi Sector Violations

user avatar

by Giorgi Kostiuk

a year ago

  1. Case Background
  2. Violations and Consequences
  3. CFTC and Uniswap Labs' Response


    4. The Commodity Futures Trading Commission (CFTC) has announced an order against Universal Navigation Inc., operating as Uniswap Labs, for allegedly offering illegal digital asset transactions through its decentralized trading protocol Uniswap.

    Case Background

    Uniswap Labs, a Delaware company based in New York, developed a blockchain-based digital asset protocol that enabled users in the U.S. and abroad to trade digital assets on the Ethereum blockchain. This protocol allowed the creation and trading of liquidity pools consisting of paired digital assets.

    Violations and Consequences

    The Uniswap protocol offered leveraged tokens that provided exposure to assets such as Ether and Bitcoin. The CFTC found that these transactions did not meet the delivery requirements within 28 days, making them unlawful for non-Eligible Contract Participants without registration as a contract market. Since Uniswap Labs was not registered, these actions were in violation of the Commodity Exchange Act (CEA).

    CFTC and Uniswap Labs' Response

    The CFTC acknowledged substantial cooperation from Uniswap Labs during the investigation, resulting in a reduced penalty. The enforcement team for this matter included Devin Cain, K. Brent Tomer, Lenel Hickson, Jr., and Manal M. Sultan.

    DeFi operators must be vigilant to ensure that transactions comply with the law.Ian McGinley, CFTC’s Director of Enforcement

    Uniswap Labs is required to pay a $175,000 fine and cease any actions violating the Commodity Exchange Act (CEA). The $UNI token of the platform is up 3% in the last 24 hours.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

15 Essential Strategies to Combat Fake Loan Offers

chest

A report outlines 15 essential strategies for consumers to identify and reject fraudulent loan offers.

user avatarKaterina Papadopoulou

Financial Fraud Sophistication Surges in 2026

chest

In 2026, the lending sector has experienced an unprecedented escalation in the sophistication of financial fraud, primarily driven by the rise of generative artificial intelligence.

user avatarMaya Lundqvist

Aave transfers control of Lens Protocol to Mask Network.

chest

Aave has redefined its role in DeFi governance by transferring stewardship of Lens Protocol to Mask Network.

user avatarLi Weicheng

Pendle Introduces New Governance Token to Enhance Participation

chest

Pendle announced a governance revamp, replacing vePENDLE with a new token, sPENDLE, to enhance participation in the DeFi sector.

user avatarAisha Farooq

Postponement of CLARITY Markup Raises Regulatory Concerns

chest

Postponement of the Digital Asset Market Clarity Act (CLARITY) raises regulatory concerns regarding decentralized finance.

user avatarLeo van der Veen

Traders Show Strong Interest in Pudgy Penguins Ahead of NFT Airdrop

chest

Pudgy Penguins sees increased trading activity as the January 29 snapshot for the Human Resource NFT airdrop approaches.

user avatarTenzin Dorje

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.