Investments in Uniswap token caused $ 1 million in losses for the user

Uniswap, a decentralized exchange (DEX), has come under the scrutiny of the US Securities and Exchange Commission (SEC). Within a day, the UNI token price dropped by almost 20%, and investors lost their money.

Due to the ambiguous situation and the jump in the UNI rate, the user suffered losses of $ 1 million. The incident was noticed by Lookonchain analysts. The user under the nickname whizardflow. eth lost 107 010 UNI (about $ 1 million), which he used to pledge on Aave.

From March 1 to March 13, whitzardflow. eth bought 262,045 UNIs, spending $ 3 million. It then deposited them on Aave as collateral and took out a $ 1.8 million loan in stablecoins. After that, the price of UNI fell, which led to the liquidation of 107,010 UNI to partially repay the investor’s debt.
as a result, whizardflow. eth was left with 155,034 UNIs worth $ 1.47 million.

Almost immediately after the information about the SEC’s announcement appeared on the network, the three whales dumped 2.03 million UNI worth $ 20 million. As a result, the price of Uniswap’s native token immediately plummeted by 17%.

Uniswap intends to fight with the SEC, as it is absolutely sure of its case. The founder of the trading platform, Hayden Adams, said that the products offered by DEX are absolutely legal, and its activities are «on the right side of history.» After receiving the Wells notice sent by the regulator, the platform has 30 days to respond to the identified violations.