Coinbase Faces New Class-Action Lawsuit Over Biometric Data Collection
Coinbase, a popular cryptocurrency exchange, is now facing a class-action lawsuit in Illinois. The lawsuit accuses Coinbase of violating the state’s Biometric Information Privacy Act (BIPA).
The plaintiffs claim that Coinbase improperly collected and stored facial data during its identity verification process. Users were required too upload a government-issued ID and a selfie, which were then processed by third-party facial recognition software. This process allegedly captured biometric identifiers like faceprints without proper notice or consent.
According to the complaint, Coinbase did not inform users about the collection of their biometric data or how it would be used. The lawsuit, filed on May 13 in the U.S. District Court for the Northern District of Illinois. They argue that the company failed to provide written notice or obtain consent for this data collection. The lawsuit states that Coinbase transmitted facial data to third-party vendors without explicit permission. The plaintiffs seek financial penalties of up to $5,000 per reckless violation, or $1,000 for negligence, plus legal expenses and injunctive relief.
- More than 10,000 individuals have filed for arbitration over these issues.
- Coinbase allegedly failed to pay necessary arbitration fees, leading to many cases being dismissed.
This isn’t Coinbase’s first BIPA-related lawsuit in Illinois. A similar case was dismissed in February after both parties agreed to drop it. Additionally, Coinbase has faced scrutiny over a recent data breach involving customer support agents.
Despite these challenges,Illinois recently dropped a separate lawsuit against Coinbase over its staking program. This follows similar moves by Kentucky, Vermont, and South Carolina after the SEC dismissed its own case.
