A newly filed class action lawsuit against Coinbase alleges that the largest US cryptocurrency is illegally storing platform users’ fingerprints and facial scans.
The lawsuit, filed in California District Court by plaintiff Michael Massel, an Illinois resident who opened a Coinbase account five years ago, alleges that the platform violated the state’s Biometric Information Privacy Act (BIPA).
According to the lawsuit, Coinbase requires customers to provide fingerprints and facial scans along with state-issued ID as part of the authentication process to use its services
But the lawsuit alleges that Coinbase violated several BIPA provisions, including failing to inform customers in writing that their biometric data would be collected and stored and not disclosing how long the biometric data would be stored.
The lawsuit alleges that Coinbase should have destroyed the biometric data after customers successfully opened an account and when they logged out or stopped using the mobile app.
According to the lawsuit, the collection and storage of biometric data exposed customers to serious privacy risks.
says the lawsuit,
“Coinbase’s unlawful collection, acquisition, storage and use of its users’ biometric data exposes them to serious and irreversible privacy risks. For example, if Coinbase’s database containing facial geometry scans or other sensitive proprietary biometric data is hacked, breached, or otherwise exposed, Coinbase users will have no means of preventing identity theft, unauthorized tracking, or other unlawful or improper use of this highly personal information . and private data.”
The lawsuit, which estimates that Coinbase created and stored facial scans for “thousands” of Illinois residents, is seeking $5,000 in damages for each BIPA violation if deemed intentional or $1,000 if accidental, plus other damages and attorney fees.
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