The U.S. Securities and Exchange Commission (SEC) is investigating Uniswap Labs, the developer of Uniswap, the world’s largest decentralized (DeFi) cryptocurrency exchange.
The move is part of a broader look into the realm of digital assets, according to the Wall Street Journal.
“Enforcement attorneys are seeking information about how investors use Uniswap and how it is marketed.
SEC chairman Gary Gensler has said DeFi projects aren’t immune from regulatory scrutiny.”
At issue is Uniswap’s own digital asset, UNI, which was distributed to users last year.
“About 21% of the tokens were set aside for the Uniswap Labs team and future employees, while an additional 18% were designated for the firm’s investors. That allocation allowed insiders to potentially reap a windfall.”
However, there are no current charges pending.
“The civil investigation of Uniswap Labs appears to be in its early stages and may not produce any formal allegations of wrongdoing.”
Ari Paul, the founder and chief investment officer of