VC Giants a16z, Union Square Ventures Get Subpoenaed by New York About Uniswap: Sources

New York State Lawyer Common Letitia James has joined a regulatory offensive towards cryptocurrency buying and selling platform Uniswap, based on inner communications in regards to the NYAG subpoenas seen by CoinDesk and two folks aware of the scenario.

Over the previous month, subpoenas have been despatched from James’ workplace to a number of enterprise capital corporations which have invested in decentralized finance big Uniswap, together with Andreessen Horowitz (generally often known as a16z) and Union Sq. Ventures, the 2 sources mentioned.

A Uniswap spokesperson mentioned by way of e-mail: “Uniswap Labs is a proud ‘Made in New York’ pioneer in DeFi know-how, offering a path to higher, fairer entry to monetary providers for all of us. We don’t need the burden of However we welcome dialogue at any time with any authorities company or elected official in regards to the future we will construct collectively as we champion accountable DeFi innovation, particularly in our residence state.”

The NYAG workplace and Union Sq. Ventures didn’t reply to a request for remark, whereas a16z declined to remark.

As well as, the U.S. Commodity Futures Buying and selling Fee (CFTC) on Wednesday ordered Uniswap Labs to pay a civil penalty of $175,000 and to cease violating the Commodity Alternate Act, the company mentioned in a information launch.

US regulators have centered on the cryptocurrency sector, particularly because the collapse of FTX and different crypto corporations in 2022. The Securities and Alternate Fee despatched Uniswap a so-called Wells discover in April 2024, alleging that the DeFi platform was appearing as a unregistered stockbroker. and unregistered inventory change.

The SEC additionally reportedly not too long ago despatched letters about Uniswap to a16z and Union Sq. Ventures.

Lawyer Common James has beforehand pursued crypto gamers like Genesis, Gemini and Digital Valuta Group, in addition to CoinEx, KuCoin and Celsius founder Alex Mashinsky.

“Letitia James seems to be following within the footsteps of SEC Chairman Gary Gensler and utilizing crypto as a political punching bag,” an individual who noticed the subpoenas mentioned on situation of anonymity, expressing widespread concern amongst crypto gamers in regards to the imaginative and prescient of some politicians on the sector.