- The Attorney said, “We are suing CoinBase to get everyone their SGB and FLR back.”
- Attorney Rispoli alleges CoinBase of fraud, misinterpretation, and unfair competition.
- Complaint filed against Coinbase Global, Inc., Coinbase, Inc., and Brian Armstrong.
Hodl Law, a cryptocurrency law firm, has filed a lawsuit against Coinbase for its alleged failure to distribute Songbird (SGB) and Flare tokens (FLR) to its customers as promised. The attorney leading the case, Fred Rispoli, has stated that Coinbase has not fulfilled its obligations to its customers in this matter.
On January 17, Rispoli tweeted about the complaint along with its details for the crypto community to witness.
According to the court document, Dallas Woody, an American crypto user, alleges Coinbase for breach of fiduciary duty, fraud – intentional misrepresentation, negligent misrepresentation, constructive fraud, conversion, common count – the money had and received, negligence, violation of unfair competition law, and a request for declaratory relief.
The document states that Coinbase faces judicial criticism over their handling of airdropped tokens, SGB and FLR. Despite receiving the tokens in September 2021 and promising distribution to eligible customers, the platform has yet to follow through on its promise, leading to a flood of inquiries from frustrated users.
Following that, the exchange has yet to give a response, and the community has rolled out a petition, titled “Coinbase users demand an answer on our $SGB (Songbird) airdrop.”
In July 2021, the world’s first Turing-complete Federated Byzantine Agreement (FBA) network, Flare Network, announced its plans to airdrop SGB to XRP holders. Those who were part of the FLR airdrop snapshot in December 2020 were the XRP holders who were eligible for the SGB airdrop.
The Twitter community is elated about this step. One such user comments:
I don’t have any dealings with Coinbase, but mad props to Fred for helping the community!
The complaint that demands a class action and a jury trial by the attorney, counselor Rispoli, was appreciated by many others and received grateful responses from the crypto community.