Coinbase Faces Illinois Biometric Privacy Lawsuit
- Alleged biometric privacy violations impact Coinbase’s KYC processes.
- Users claim lack of consent.
- Potential shift in regulatory compliance norms.
The lawsuit could influence biometric KYC practices in the U.S. crypto exchange market.
Coinbase Global, Inc. faces a lawsuit for alleged violations of Illinois Biometric Information Privacy Act during onboarding. Plaintiffs claim Coinbase captured biometric data without user consent, violating state law protections.
Key plaintiffs Scott Bernstein, Gina Greeder, and James Lonergan represent Illinois Coinbase users. Allegations include unauthorized collection and storage of biometric information during the verification process.
The case raises concerns over data privacy and user trust in crypto exchanges. Future compliance requirements may be influenced by the lawsuit’s outcome. No significant market or coin movements observed currently.
Financial implications involve statutory damages sought by plaintiffs, totaling $5,000 per willful and $1,000 per negligent violation, alongside calls for Coinbase to amend its data practices.
The lack of a public response from Coinbase executives leaves investors and users speculating on potential changes to privacy policies. The outcome could lead to industry-wide adjustments in how biometric data is handled.
Given past cases like those involving Facebook, regulatory shifts could demand stricter biometric protections in compliance norms. Affected parties may push for more transparent data handling practices. As noted in the legal filings, “At no point during the Verification Process are Coinbase users asked to consent to the collection of their biometric information, notified that their biometric data will be collected by an unrelated third party…”
