Class action lawsuit against Uniswap decentralized exchange and others was dismissed today. This is yet another win for cryptocurrency world. The reason behind the fact misuse of software does not itself create liability for the developers.
In the document, it says, “looking at the allegation in the FAC, it defies logic that drafter of computer code underlying a particular software platform could be liable under Section 29(b) for a third party misuse of that platform”.
It further said that smart contracts are self-executing, self-enforcing code that contain the terms of the agreement between the buyer and seller. This is true especially in case of decentralized exchanges like Uniswap that operate on smart contracts with Uniswap being just a UI that calls myriad functions of a smart contract.
Another variant of aforementioned statement was said on the page 37, where it said that collateral, third-party human intervention causes the harm, not the underlying platform. In other words, if one falsify their booking records in quickbooks and their accountant relies on that to file incorrect returns, intuit is not liable for the tax fraud.
Could arguments like that be said for the developers behind Tornado Cash, a very popular coin mixing service? Absolutely, the developers had no intention that their services could be misused.
I am from Brisbane, Queensland and I hold post of Associate Editor at Cryptocoindaddy.