• 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

Aave's Fractal Setup Indicates Potential Bullish Continuation

chest

Aave's price action suggests a potential bullish continuation as it trades within a symmetrical triangle formation.

user avatarAndrew Smith

Market Volatility Threatens Long-Term Investment Discipline

chest

Market volatility is identified as the greatest threat to long-term investment success, impacting investor discipline more than capital.

user avatarJacob Williams

Litecoin Price Forecasted for Explosive Rally

chest

A crypto analyst predicts that Litecoin could surge to $110, breaking out of its long-term descending channel.

user avatarDavid Robinson

Avalanche and Chainlink Show Stability Amid Market Fluctuations

chest

Avalanche and Chainlink are maintaining stability in their price movements, providing a solid backdrop for emerging projects like Apeing.

user avatarZainab Kamara

OpenAI, Anthropic, and Block Join Forces to Standardize AI Agents

chest

OpenAI, Anthropic, and Block have formed the Agentic AI Foundation to create standards for AI agents, preventing fragmentation and ensuring interoperability.

user avatarSon Min-ho

Bitcoin Price Soars to 94K on Escalating Odds of Another Rate Cut

chest

Bitcoin's price surged to an intraday high of around 94,600, marking a 35% increase in 24 hours, driven by speculation of a potential interest rate cut by the US Federal Reserve.

user avatarAyman Ben Youssef

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.