Coinbase, one of the largest cryptocurrency exchanges in the world, is currently facing a lawsuit for allegedly collecting biometric data from its users without their consent. The lawsuit was filed in San Francisco on March 2, 2021, and seeks damages for violations of the Illinois Biometric Information Privacy Act (BIPA).
BIPA is a state law that regulates the collection, use, and storage of biometric data, such as fingerprints, facial recognition, and iris scans. The law requires companies to obtain written consent from individuals before collecting their biometric data and to provide them with information about how their data will be used and stored.
According to the lawsuit, Coinbase violated BIPA by collecting biometric data from its users without their consent or knowledge. The plaintiffs claim that Coinbase required them to submit a photograph of their government-issued ID and a selfie for identity verification purposes. Coinbase allegedly used facial recognition technology to match the two images and create a biometric template of the user’s face.
The plaintiffs argue that Coinbase did not inform them that their biometric data was being collected or how it would be used and stored. They also claim that Coinbase did not obtain their written consent for the collection of their biometric data, as required by BIPA.
The lawsuit seeks damages of $5,000 for each violation of BIPA, which could add up to millions of dollars if the case is successful. The plaintiffs also seek an injunction to prevent Coinbase from continuing to collect biometric data without consent.
Coinbase has not yet responded to the lawsuit but has previously stated that it takes user privacy and security seriously. The company has implemented various security measures, such as two-factor authentication and encryption, to protect user data.
This lawsuit is not the first time that Coinbase has faced legal action over its handling of user data. In 2018, the company was sued for allegedly mishandling customer funds during a Bitcoin Cash hard fork. Coinbase settled the lawsuit for $962,500 without admitting any wrongdoing.
The lawsuit against Coinbase highlights the importance of companies being transparent about their data collection practices and obtaining consent from users before collecting their biometric data. As more companies adopt biometric authentication methods, it is crucial that they comply with privacy laws and protect user data from potential breaches or misuse.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- Minting the Future w Adryenn Ashley. Access Here.
- Source: Plato Data Intelligence: PlatoData