The airdrop of the Flare Network Token (FLR) has sparked a lot of controversy in the XRP ecosystem over the last week, aside from the legal dispute involving Ripple and the US Securities and Exchange Commission. On January 9, 2023, XRP holders finally received their FLR tokens after some more than 2 years, albeit not entirely as anticipated, according to Bitcoinist.
Despite the fact that Coinbase, the most prestigious markets like Binance and Kraken have enabled the airdrop distribution. The FLT has not been made available to the subscribers of the American exchange.
To challenge Coinbase and its CEO Brian Armstrong, the XRP movement, led by attorney Frederick Rispoli, has filed a class action lawsuit.
The legal team Hodl Law, led by Rispoli, brought the action Friday in United States District Court on behalf of the primary plaintiff Dallas Woody. On Hodl Law's Twitter, the following was posted:
A crypto company can‘t steal customer funds. That’s Business Law 101. Even after FTX, some exchanges still haven‘t got the message…because they weren’t being held to account. That‘s over. Coinbase. Return customers’ SGB and FLR, with damages, now.
We have filed a class action lawsuit against Coinbase for its failure to provide their customers with Songbird and Flare tokens that Coinbase publicly affirmed it would distribute. No more excuses.
FLR Airdrop: XRP Hodlers Challenge Coinbase
According to the complaint, the crypto exchange agreed to give the airdrop to XRP owners. According to the lawsuit, XRP holders have furthermore bought XRP from the exchange, held it in the defendant's custody, and/or transferred XRP from other wallets into the defendant's possession as a result of Coinbase's persistent and open claims.
The plaintiffs accuse Coinbase of civil wrongdoing predicated on the infringement, including breaches of fiduciary duty, fraud (intentional misrepresentation), negligent misrepresentation, constructive forgery, conversion, common count, irresponsibility, infringement of unfair competition law, and a demand for declaratory relief.
The Songbird (SGB) tokens, which have been given out as conjunction of the airdrop from the Flare Network in September 2021 as a lead-up to the FLR allocation, are also included in the case.
The Good News: Class action lawsuit against Coinbase to force it to return its customers #SGB and #FLR. Please follow or check in with @hodl_law for updates. If you were a customer that didnt get your SGB and FLR and are interested in signing up, go here: https://t.co/Zr7wmvgxof
— Fred Rispoli (@freddyriz) January 16, 2023
Hodl Law is requesting a declaration that all Coinbase users with XRP account are the legitimate proprietors of SGB and FLR that Coinbase acquired but would not transfer as a consequence of Coinbase's illegal activities with regard to SGB and FLR on favor of the suggested group of all Coinbase users.
Rispoli further asks for compensation for losses resulting from the illegal conversion of the plaintiff's SGB and FLR by the defendants.
Additionally, Brian Armstrong, the CEO of Coinbase, is accused of having “the capacity and authority” to control the operations, personnel, and distribution of Coinbase as well as other things.
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