Coinbase To Face Class Action Lawsuit For FLR Token Issue

Flare Airdrop is one of the much anticipated events in the recent history of the digital asset industry. However, the distribution of FLR tokens didn’t make it to the expectation of Ripple’s native token, XRP holders. In this disappointment, a class action lawsuit has been filed against Coinbase, crypto exchange.

Flare community to go against Coinbase?

As per a complaint filed in the United States District Court, Plaintiff Dallas Woody has filed a class action lawsuit against Coinbase for its failure to provide their customers with Songbird and Flare tokens. It is alleged that the crypto exchange publicly agreed to distribute the airdrop among the XRP holders.

It mentioned that the lawsuit is filed individually and on the behalf of all others similarly situated to the Flare Airdrop. However, the complaint also carries the name of Coinbase’s CEO Brain Armstrong. While it highlights that the objection is based on personal knowledge and the investigation of counsel.

Plaintiff believes that some evidentiary support will exist for and later support the allegations set against Coinbase.

Earlier, Coingape reported that the Ripple CTO criticized the Flare Network’s airdrop process.

Coinbase illegally converted FLR tokens as own property?

As per the filings, Coinbase permitted the buying, selling and custody of XRP tokens from February 28, 2019. However, due to the popularity and utility of some digital asset projects sought to airdrop their newly created cryptos to XRP holders and Flare Network was one of them.

Flare Network decided to airdrop FLR to XRP holders over a snapshot of engaging in XRP digital wallets. The Snapshot procedure happened on December 12, 2020. While Coinbase made public affirmations of participation in the Flare Airdrop.

Plaintiff alleged that Coinbase refused to distribute SGB and FLR tokens despite having received them from Flare Network. He further asserted that the defendants have unlawfully converted the XRP holders’ property. This action has breached Califonia’s Unfair competition Law and committed several other tortious acts.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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