Coinbase has been sued by the state of California in violation of Illinois’ Biometric Information Privacy Act (BIPA). The popular crypto exchange is accused of “unlawful collections, obtainments, use, storage, and disclosure” of users’ biometric data, specified as fingerprints and facial images, used in KYC confirmation. 

While biometric data is required for KYC, companies must disclose to customers why and for how long they will store that data. The company must also disclose how it will destroy collected biometric data, which the suit alleges Coinbase did not do.

“In fact, Coinbase made no mention of biometric information, collection of biometric information, or storage of biometric information.”

Michael Massel, the plaintiff, claims Coinbase is in direct violation of the BIPA. He seeks $5000 for each violation and another $1000 for other undisclosed violations “in the event the court finds that Coinbase’s violations of BIPA were not willful.”

The BIPA establishes that “individuals are in control of their own biometric data and prohibits private companies from collecting it” unless these companies obtain written consent from their customers. The ACLU of Illinois passed this law back in 2008 to prevent discriminatory and harmful misuse of people’s biometric data. 

Past Coinbase issues 

The industry has seen Coinbase

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Author: Emily Tonelli

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