Coinbase is facing a class-action lawsuit filed by a group of Illinois residents who allege the crypto exchange illegally collected and shared their biometric data as part of its identity verification process.
The suit, brought to federal court on May 13, claims the company violated Illinois’ Biometric Information Privacy Act (BIPA) by capturing users’ facial data without proper notice or consent.
Consumer Fraud and Data Breach Charges
According to the submission, users were asked to upload a government ID and a selfie as part of the sign-up procedure. These images were then sent to third-party facial recognition tools that analyzed facial features like geometry and faceprints. However, the suit claims this was done without the consent of users, which the violates BIPA.
“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,
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