Coinbase faces New Class-Action Lawsuit Over Biometric Data
Coinbase, a popular cryptocurrency exchange, is in legal trouble again. This time, it’s a class-action lawsuit in Illinois.The lawsuit accuses Coinbase of breaking the state’s Biometric Details Privacy Act (BIPA).
Some Coinbase users claim the platform improperly collected their facial data during identity checks. They say Coinbase scanned their faces without proper notice or consent.This action allegedly violates illinois’ biometric privacy laws.
The lawsuit, filed on May 13, states that users had to upload an ID and a selfie. These were then processed by third-party facial recognition software. The plaintiffs argue that coinbase captured their biometric identifiers, like faceprints, without informing them.
According to the complaint, Coinbase shared this data with third-party vendors like Jumio and Onfido without users’ explicit permission. The group is seeking financial penalties of up to $5,000 per violation.
Coinbase has not commented on the lawsuit. This isn’t the first time Coinbase has faced BIPA-related issues in Illinois. A similar lawsuit was filed in May 2023 but was later dismissed.
Adding to Coinbase’s troubles, a recent data breach involving customer support agents has led to at least six related lawsuits. This intensifies scrutiny over how the platform handles sensitive user information.
