(Bloomberg) — The Commodity Futures Trading Commission fined Uniswap Labs $175,000 after charging the decentralized crypto exchange with illegally offering leveraged retail trading in digital assets.
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Universal Navigation Inc., which does business as Uniswap Labs, has been ordered to cease and desist from violating the Commodity Exchange Act as part of the settlement. Code developed in large part by Uniswap lets users trade digital assets — including leveraged tokens — directly, without intermediaries.
The CFTC alleged that these tokens “are leveraged or margined commodity transactions that did not result in actual delivery within 28 days and therefore can be offered to non-Eligible Contract Participants only on a board of trade that has been designated or registered by the CFTC as a contract market, which Uniswap Labs was not,” according to the agency.
Earlier this year, Uniswap announced that it received a Wells notice from the Securities and Exchange Commission, an indication that the regulator was planning to take action against the company. A representative for Uniswap did not immediately return a request for comment.
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