• 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

Bybit Releases 29th Proof-of-Reserves Report

chest

Bybit has published its 29th Proof-of-Reserves report to enhance transparency and address security concerns in the cryptocurrency industry.

user avatarLuis Flores

Floki Inu Faces Bearish Sentiment Amid Market Challenges

chest

Floki Inu continues to struggle with bearish sentiment, trading at $0.0000039 and facing technical hurdles.

user avatarArif Mukhtar

Ethereum's Market Movement and Compression Phase

chest

Ethereum (ETH) is currently experiencing a compression phase, with market participants awaiting its next move. ETH has been ranging around the 2,950-3,000 area after a recent sellside liquidity sweep, indicating a pause before its next movement.

user avatarDavid Robinson

USDe's Growth Phase and Subsequent Contraction

chest

USDe experienced rapid growth before its market cap contraction, reflecting its integration into DeFi protocols and institutional strategies.

user avatarMaria Gutierrez

USDe's Unique Mechanism and Market Trust Challenges

chest

USDe's departure from traditional financial infrastructure raises questions about its stability under market volatility.

user avatarAndrew Smith

New XRPL Lending Model Raises Big Questions for XRP Holders

chest

A new lending structure on the XRP Ledger has been proposed, involving depositors, loan brokers, and collateralized borrowing.

user avatarZainab Kamara

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.