Coinbase Faces Class-Action Lawsuit Over Biometric Data Practices

Coinbase is under scrutiny as Illinois users allege violations of the Biometric Information Privacy Act related to the collection and sharing of facial recognition data.

Summary

A class-action lawsuit has been filed against Coinbase by Illinois users, alleging violations of the Biometric Information Privacy Act (BIPA). The plaintiffs claim that Coinbase's collection of facial recognition data for identity verification was done without proper notification or consent. They seek damages and injunctive relief for alleged reckless and negligent violations. The lawsuit also highlights Coinbase's previous legal issues regarding biometric data collection and a recent data breach involving customer support agents leaking user data.

Terms & Concepts
  • Biometric Information Privacy Act (BIPA): A state law in Illinois that regulates the collection, use, and storage of biometric identifiers and information.
  • Know Your Customer (KYC): A regulatory process used by financial institutions to verify the identity of their clients, often involving the collection of personal information.