Class Action Lawsuit Filed Against Coinbase Over Flare Token Airdrop

  • Coinbase’s CEO Brain Armstrong is named in the lawsuit as well. 
  • The exchange has gone on record as saying they will be taking part in the Flare Airdrop.

Plaintiff Dallas Woody has filed a class action lawsuit against Coinbase in the United States District Court for failing to provide Songbird and Flare tokens to Coinbase clients. Supposedly, the cryptocurrency exchange openly consented to divide up the airdrop among XRP investors.

The complaint said that it was filed on behalf of the plaintiff and all those who were similarly affected by the Flare Airdrop. However, Coinbase’s CEO Brian Armstrong is named in the lawsuit as well. While emphasizing that the objection is supported by both counsel’s investigation and personal knowledge.

Struggle Continues For Coinbase

The plaintiff is certain that they will be able to prove their case against Coinbase with evidence. The Chief Technology Officer of Ripple was said to have voiced his disapproval of the Flare Network’s airdrop strategy before.

The documents show that as of February 28, 2019, Coinbase may be used for the purchase, sale, and storage of XRP tokens. A number of digital asset companies, like Flare Network, have attempted to airdrop their freshly formed cryptocurrencies to XRP holders owing to the widespread interest in and practical use of digital assets.

Following a brief period of using XRP digital wallets, Flare Network chose to airdrop FLR to holders. On 12 December 2020, the Snapshot operation was carried out. However, Coinbase has gone on record as saying they will be taking part in the Flare Airdrop.

Plaintiff claimed that, despite receiving SGB and FLR coins from Flare Network, Coinbase failed to make them available to customers. He further alleged that the Defendants had illegally converted the property of the XRP Holders.

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