Uniswap is preparing to lock out a variety of wallets on its platform. Uniswap, the cryptocurrency exchange that runs on a decentralized network protocol, will be blocking wallets it considers to have been affiliated with illegal activities.
Uniswap Users Might Lose Access To Wallets
On its official website, in its frequently asked question section, Uniswap explains that it intends to curb criminal activ through investigations, in partnership with TRM Labs.
Listing the number of wallets likely to get blocked, an excerpt from its website reads ;
We intend to only block wallets that are owned or associated with clearly illegal behavior like: sanctions, terrorism financing, hacked or stolen funds, ransomware, human trafficking, and child sexual abuse material (CSAM).
In addition, apps that have already been blocked, have been traced to illicit activities, as noted by Uniswap. The platform maintains that it is unlikely that any errors have been made. However, it made provisions for users to make enquiries.
Uniswap also noted that privacy and data practices have not changed for existing users.
Uniswap in troubled waters
The update comes not long after Uniswap got hit with a class action lawsuits. The lawsuits, filled by two U.S firms, — Kim and Serritella LLP and Barton LLP — alleges that Uniswap had breached securities law, after carrying out securities sales branded as digital tokens.
In one of the lawsuit, plaintiff Nessa Riley, a North Carolina based crypto investor, claims to have lost her $10,400 investment in EthereumMax, Matrix Samurai, and Rocket Bunny crypto assets.
She alleges that Uniswap has failed to conduct thorough investigations on fraudulent users of the platforms, who are known to list fake digital tokens.
Uniswap is also being accused of facilitating rug pulls, as well as pump and dump schemes that have taken place on the network. The lawsuit is expected
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.