🔍 What's Happening at Coinbase?
Cryptocurrency giant Coinbase is facing a fresh legal storm, this time over suspected violation of Illinois biometric privacy legislation the Biometric Information Privacy Act (BIPA). Let's take a closer look at this unfolding story to understand what's going on!
⚖️ Lawsuit Claims Explained 🇺🇸
Recently, three Coinbase users from Illinois Scott Bernstein, Gina Greeder, and James Lonergan, have filed a class-action lawsuit in federal court regarding alleged violations related to biometric data. Specifically, the suit claims that Coinbase did not appropriately inform its customers about their biometric data collection practices required for identity verification, also known as Know Your Customer (KYC).
But what's biometric data exactly? In this context, it's our facial geometry, derived from uploaded selfies and IDs during account creation and verification processes at Coinbase.
🙅♂️ What's the Problem Under BIPA?!
Under Illinois law, organizations must comply with specific guidelines regarding the use and handling of biometric data, including:
- Clearly notifying users in writing about the collection and storage of such sensitive information.
According to the allegations, Coinbase hasn't met these key obligations. Moreover, plaintiffs claim their face-based biometric data was shared with third-party verification vendors, notably Jumio, Onfido, Au10tix, and Solaris, without explicit consent another possible breach of BIPA rules.
🗃️ Arbitration Claims Unanswered 📑
Interestingly, the same group points out that over 10,000 Coinbase users have reportedly filed arbitration demands on this very issue but Coinbase allegedly refused to cover arbitration expenses, resulting in the dismissal of many arbitration requests. Now, the grievances have led users to turn back to the courtroom for answers.
💰 Financial Impact & What Users Seek 📌
The plaintiffs are seeking sizeable relief amounts, specifically:
📢 Stay Proactive: What We Recommend 🛡️
While this legal process unfolds, protecting our personal and biometric data remains essential! We recommend:
🚨 Not Coinbase’s First Time with BIPA ⚠️
This isn't Coinbase's first go-around with BIPA-related litigation, either. Previously, another lawsuit accusing them of similar violations moved toward arbitration before eventually being dismissed earlier this year. Clearly, biometric data security and privacy remain hot-button matters in crypto and beyond!
We hope this sheds some light and helps you stay informed. Remember—knowledge is our strongest asset in navigating digital spaces securely and confidently!
