SEC Launches Probe Into Company Behind Largest Decentralized Crypto Exchange Uniswap

The U.S. Securities and Exchange Commission (SEC) is reportedly looking into the company behind crypto’s leading decentralized exchange Uniswap (CRYPTO: UNI).

What Happened: According to a report from the Wall Street Journal, the U.S. regulator has launched a probe into Uniswap Labs – the main developer of Uniswap.

Sources close to the matter shared that enforcement attorneys are in the midst of seeking information on how investors use Uniswap and how exactly it is marketed.

Meanwhile, a spokesperson for Uniswap Labs stated that the company is committed to complying with the laws and regulations governing the industry and will provide information to regulators that will assist them with any inquiry.

At the time of writing, Uniswap accounted for $1.9 billion in 24-hour trading volume, making it the largest decentralized exchange in the crypto space.

Read Also: What Is Uniswap?

Despite such a large volume of decentralized trading, the exchange has been the subject of criticism from the wider crypto community on a number of occasions.

Seeing as Uniswap is built on the Ethereum (CRYPTO: ETH) blockchain, swaps and transactions on Uniswap can often be expensive owing to Ethereum’s gas fees.

More recently, the exchange faced a fair amount of backlash after it moved to delist over 100 crypto tokens from its platform.

“To continue to innovate and provide this tool for the Uniswap community, we monitor the evolving regulatory landscape. Today, consistent with actions taken by other DeFi interfaces, we have taken the decision to restrict access to certain tokens through app.uniswap.org.,” said Uniswap Labs in a blog post at the time.

Price Action: At press time, UNI was trading at $29, losing 2.34% over the past 24-hours.

The majority of the crypto market, including Bitcoin (CRYPTO: BTC) and Ethereum, traded higher.

The biggest gainer was Solana (CRYPTO: SOL) that gained 22.74% in the last day, extending a six-week rally that saw its price hit an all-high of $145.97 earlier today.