Popular crypto exchange Coinbase is facing a class action lawsuit over an issue with the Flare (FLR) token airdrop. The Flare (FLR) token airdrop was one of the most hyped events among the XRP community. Users who held XRP tokens almost two years ago, during a snapshot in December 2020, are eligible to receive FLR tokens. The Flare network began airdropping FLR tokens to XRP holders on January 10th. However, things did not go as smoothly as planned.
The lawsuit against Coinbase was filed on January 13th at the United States District Court. Plaintiff Dallas Woody has sued the exchange for not providing its users access to Songbird and Flare tokens. The crypto exchange is believed to have officially agreed to distribute the airdrop to XRP holders.
It stated that the case was filed personally but on behalf of everyone in a position to benefit from the Flare Airdrop. However, the complaint also lists Brain Armstrong, the CEO of Coinbase.
What is the Flare token and why is Coinbase being sued?
The Flare network was built to improve the utility and functionality of EVMs (Ethereum Virtual Machines). Moreover, the main goal of Flare Network is to introduce safe, decentralized smart contracts to other protocols like Litecoin and Ripple.
FLR is a versatile token that improves the network and the value of the currency. For instance, the FLR token can be used for transaction fees, collateral, and participation in governance.
Coinbase, Kraken, Bitfinex, and other exchanges added Flare (FLR) support earlier this month. However, people are accusing the exchange of not going through with the deal. Additionally, many took to Twitter and expressed their disappointment at the exchange.
The lawsuit is the latest hurdle to come Coinbase’s way. The exchange recently announced that it would lay off 20% of its global workforce. There are rumors that the firm may shut down several operations in Japan as a result of the firings.