TechFlow news, May 19 — According to Cointelegraph, Illinois users have filed a class-action lawsuit against Coinbase, accusing the company of violating the state's Biometric Information Privacy Act (BIPA) through its identity verification procedures. The lawsuit claims that Coinbase collected users' facial biometric data during its KYC process without providing written notice, obtaining user consent, or disclosing a data retention and destruction policy.
The plaintiffs also allege that Coinbase shared this data with third-party verification vendors without authorization. The lawsuit seeks $5,000 in damages for each intentional violation and $1,000 for each negligent violation. It is reported that over 10,000 users have submitted arbitration requests, but Coinbase has refused to pay arbitration fees, resulting in the dismissal of those requests.
