• Coinbase faces a proposed class-action lawsuit for allegedly violating the Illinois Biometric Information Privacy Act (BIPA) by collecting and storing customers’ fingerprints and facial templates without permission.
• The lawsuit claims that Coinbase neglected to inform users of the data’s purpose, storage length, and disposal methods.
• The plaintiff seeks $5,000 in damages per intentional BIPA violation, or $1,000 if not deliberate, as well as legal fees and court costs for the class action.
Coinbase Faces Class-Action Lawsuit
Crypto exchange Coinbase is facing a proposed class-action lawsuit alleging that it violated Illinois’ Biometric Information Privacy Act (BIPA) by collecting and storing customers’ fingerprints and facial templates without proper permission.
Allegations Against Coinbase’s KYC Protocols
The legal complaint claims that the exchange uses photos to create a biometric model of a user’s face, amassing “highly detailed geometric maps of the face” and fingerprints of thousands of Illinois inhabitants which were illegally hoarded and stashed by the company. The lawsuit also alleges that Coinbase’s mobile app requires biometric verification such as fingerprint or facial recognition to authenticate the user’s account access.
Grave Privacy Risks For Coinbase Users
The case maintains that Coinbase’s “collection, acquisition, storage, and use” of such information is “illegal” and exposes users to “grave and irrevocable privacy risks.” Under BIPA, firms must obtain user approval when collecting their biometrics and furnish details on the data’s purpose, storage duration, and disposal methods. The lawsuit alleges that Coinbase failed to produce a written policy outlining a retention schedule and criteria for permanently disposing of biometric data.
Damages Sought By Plaintiff
The plaintiff seeks $5,000 in damages for each intentional BIPA violation or $1,000 if not deliberate as well as payment of legal fees and court costs for the class action.
Coinbase Shares Trading At Just Over $50 Per Share
Coinbase’s shares are trading at just over $50 per share having risen almost 50% this year. The exchange has yet to comment on any action taken in regards to this case.