The U.S. Court of Appeals for the Second Circuit has upheld a previous decision dismissing a class action lawsuit against Uniswap, a decentralized exchange platform. The lawsuit, filed by investors in 2022, alleged that Uniswap Labs and its venture capitalists enabled the issuance of fraudulent tokens on their platform, thereby harming those who invested. A lower court judge, Judge Katherine Polk Failla, previously ruled in favor of Uniswap, dismissing the case before it reached trial. The plaintiffs appealed this decision in September 2023, but the Second Circuit’s recent ruling largely supports her judgment, rejecting claims under both federal securities laws (Securities Act and Exchange Act). The appeals court reasoned that holding a developer liable for fraudulent activity on their platform is illogical.