In addition to the legal battle between Ripple and the US Securities and Exchange Commission, the Flare Network Token (FLR) airdrop has caused quite a stir in the XRP community in recent weeks. After more than two years, XRP holders finally received their FLR tokens on January 9, 2023, even if not as expected.
Major exchanges like Binance and Kraken have supported airdrop distribution, though there is one exception: Coinbase (NASDAQ:COIN). The American exchange did not distribute the FLT to its users.
Coinbase is also trading on B3 through the ticker (BOV: C2OI34).
But the XRP community surrounding attorney Frederick Rispoli does not accept this and has filed a class action lawsuit against Coinbase and its CEO, Brian Armstrong.
The lead plaintiff Dallas Woody is represented by the law firm Hodl Law, which filed the lawsuit yesterday in US District Court, led by Rispoli. Hodl Law Twitter account Spread This is amazing:
A crypto company cannot steal customers’ money. This is Trade 101. Even after FTX, some exchanges still didn’t get the message…because they weren’t held accountable. is over. Coinbase. Restore SGB and FLR for corrupted clients now.
We have filed a class action lawsuit against Coinbase for failing to provide its customers with the Songbird and Flare tokens that Coinbase has publicly announced it will be distributing. There are no more excuses.
XRP Hodlers Sue Coinbase via FLR Airdrop
The complaint alleges that the cryptocurrency exchange has publicly agreed to distribute airdrops among XRP holders. Coinbase’s repeated and public assertions caused XRP holders to additionally purchase XRP from the exchange, hold it in the custody of the defendant, and/or transfer the XRP from other wallets to the custody of the defendant, according to the complaint.
Based on the breach, the plaintiffs are pursuing a civil action against Coinbase for breach of fiduciary duty, fraud (intentional misrepresentation), negligent misrepresentation, constructive fraud, transfer, co-number, negligence, violation of unfair competition law, and a demonstrative exemption claim.
Also part of the process are Songbird tokens (SGB), which were distributed as part of the Flare Network airdrop in September 2021 as a precursor to the FLR distribution.
As a result of Coinbase’s illegal actions with respect to SGB and FLR, Hodl Law, on behalf of the proposed class of all Coinbase customers with XRP accounts, is seeking acknowledgment that XRP holders are the rightful owners of SGB and FLR that Coinbase has received and has not distributed.
Further, Rispoli seeks compensation for losses incurred as a result of defendants’ unlawful diversion to the plaintiff’s SGB and FLR.
This allegation was also brought against Coinbase CEO Brian Armstrong for having the “power and authority” to direct the management and activities of Coinbase and its employees and to cause Coinbase to distribute the tokens:
Defendant Armstrong had consistent and day-to-day management of Coinbase’s operations, including the decision to accept all Flare Airdrop SGB and FLR on behalf of its clients. […]. Armstrong has knowingly exercised his power and influence to compel Coinbase to engage in the illegal behavior described […].
At the time of writing, XRP (coin: XRPUST) price was at $0.3929, consolidating below the $0.41 resistance.
With information from Bitcoinist