Coinbase is accused of violating Illinois biometric privacy laws by failing to inform users about facial data collection

According to Cointelegraph, Coinbase has been sued by users for allegedly violating the Illinois Biometric Information Privacy Act (BIPA). The prosecution accuses Coinbase of collecting, storing, and sharing facial recognition data without the user's written consent during the KYC process, and failing to provide destruction guidelines. The lawsuit also pointed out that Coinbase transmitted data to third-party validators such as Jumio, and over 10000 people are suspected to have initiated arbitration in this regard. The plaintiff demands compensation of $5000 for each violation.