• Coinbase is being sued for violating the Illinois Biometric Information Privacy Act (BIPA) by collecting and using biometric data without customers’ consent.
• The lawsuit seeks $5,000 in damages for each “intentional and reckless violation” of BIPA plus an additional $1,000 per violation found by Massel’s legal representation.
• Coinbase’s collection, obtainment, storage and use of customers‘ biometric data is alleged to be unlawful and puts clients at risk of identity theft.

Cryptocurrency Exchange Coinbase Slapped with Lawsuit Over Biometric Data

A newly filed lawsuit alleges that crypto exchange Coinbase improperly collected, stored, and distributed customers’ biometric data. Cryptocurrency exchange Coinbase has been slapped with a lawsuit filed with a District Court in California on May 1 for violating Illinois’ Biometric Information Privacy Act (BIPA).

Lawsuit Alleges Violations of BIPA Regulations

The suit alleges the exchange collected and improperly used its customers’ fingerprint and facial recognition data. Bloomberg reports plaintiff Michael Massel is seeking relief in the form of $5,000 in damages for each “intentional and reckless violation” of BIPA and an additional $1,000 for every violation Massel’s legal representation can find. According to Decrypt, the lawsuit accuses Coinbase of collecting biometric information through its KYC procedures and that this data was illegally obtained, used, stored, and disseminated.

Regulations Require Written Consent from Customers

BIPA regulations require a company seeking to collect biometric data to inform a person in writing that it obtains such data and must specify the purpose and duration of the data’s storage. BIPA further requires written consent from a customer, as well as publishing “publicly‐available written retention schedules and guidelines for permanently destroying biometric identifiers and biometric information.“

Massel Seeks Damages For „Unlawful“ Use Of Biometrics Data

Massel’s legal team argues Coinbase does not comply with the regulations when it collects customers’ data before and after creating new accounts. The suit alleges Coinbase’s “collection