California District CourtA lawsuit filed in . Coinbase alleged that its biometric data collection practices regarding KYC audits violated the law.
The lawsuit filed in California District Court on May 1, 2023, coinbaseof Illinois Biometric Information Privacy Act It claims to violate the BIPA. According to the complaint, Coinbase was required to obtain users’ consent when collecting biometric data.
No Statement by Coinbase Yet
Coinbase, like other centralized exchanges, requires users to scan a valid ID card and upload a selfie. It then records this information to confirm the face match and to create a biometric template of the user’s face.
Claiming that Coinbase’s KYC compliance procedure is illegal, the complaint says users will have no protection against identity theft if the company’s biometric database is hacked. In addition, the stock market KYCinsists that users must permanently destroy their biometric data immediately after checks.
However, Coinbase is expected to provide information on the purpose of collecting the data, how long it will store, how long it will be used, and how it will be permanently destroyed.
The filing argues that the exchange does not have a written public policy that sets a retention program and guidelines for the permanent destruction of biometric information.
Michael Masselplaintiff, intentionally BIPAseeks damages of $5,000 per violation or $1,000 per unintentional violation.
