New York Authorities Launch Investigation into Uniswap

According to a report from CoinDesk, the state of New York has joined the list of regulatory bodies taking legal action against Uniswap, the leading decentralized exchange (DEX) in the cryptocurrency space.

New York Attorney General Letitia James has issued an order requiring investment funds that have invested in Uniswap, including a16z and Union Square Ventures, to cooperate in an ongoing investigation.

Uniswap, developed by New York-based Uniswap Labs, has responded to the issue:

As a pioneering project in decentralized finance (DeFi) technology originating from New York, Uniswap Labs is proud to provide fair and efficient financial services to all users. While we regret any legal pressure from the authorities, we are willing to engage in dialogue with all regulatory agencies to collaboratively build a future where innovations in DeFi can develop responsibly, particularly in our home state of New York.

On September 4th, the Commodity Futures Trading Commission (CFTC) imposed a $175,000 fine on Uniswap for allowing the trading of leveraged cryptocurrency assets without registering with the agency.

Additionally, Uniswap is also under investigation by the U.S. Securities and Exchange Commission (SEC) following a warning issued in April.

Recently, the New York government, similar to the SEC, has intensified its scrutiny of the cryptocurrency industry. They have launched investigations into several companies accused of violations, including the “trio” Genesis – DCG – Gemini, as well as exchanges CoinEx and KuCoin.

Despite facing negative news, Uniswap (UNI) has seen little price movement in the last 24 hours. UNI is currently trading around $6.26.