Coinbase class action lawsuit overview:
- Who: Three customers filed a class action lawsuit against Coinbase Global Inc. and Coinbase Inc.
- Why: The plaintiffs claim Coinbase collects and shares biometric data without getting user consent.
- Where: The Coinbase class action was filed in Illinois federal court.
A new class action lawsuit alleges Coinbase collects and shares biometric data without first obtaining user consent.
Plaintiffs Scott Bernstein, Gina Greeder and James Lonergan filed the class action complaint against Coinbase on May 13 in Illinois federal court, alleging violations of the Illinois Biometric Information Privacy Act (BIPA) and the Illinois Consumer Fraud and Deceptive Business Practices Act (IFCA).
According to the lawsuit, Coinbase uses facial recognition technology to verify users’ identities but fails to obtain the required consent from users before collecting their biometric data.
The lawsuit claims that Coinbase’s identity verification process involves users uploading a photo of their government-issued ID and a selfie. The company then uses facial recognition software to analyze and compare the images, generating a unique digital representation of the user’s face, known as a face template or face scan.
However, the plaintiffs allege that Coinbase does not inform users that their biometric data is being collected or provide them with the required notice and consent forms, which is a violation of the BIPA.
Coinbase allegedly shares users’ biometric data with third-party vendors
The lawsuit further alleges that Coinbase shares users’ biometric data with third-party vendors, such as Jumio and Onfido, without obtaining users’ consent. These vendors provide the facial recognition software used by Coinbase, and the lawsuit claims that they also store users’ biometric data on their servers.
The plaintiffs argue that Coinbase’s failure to obtain consent for the collection and sharing of biometric data puts users at risk of identity theft and unauthorized tracking.
The plaintiffs are suing on behalf of all Illinois residents who had their biometric data collected by Coinbase in the past five years. They are seeking an injunction requiring Coinbase to comply with BIPA’s notice and consent requirements as well as damages of $5,000 for each intentional violation and $1,000 for each negligent violation.
The lawsuit also seeks damages under the ICFA for Coinbase’s alleged deceptive business practices.
Coinbase recently faced a class action lawsuit alleging it failed to protect users from a “pig butchering” financial scam by neglecting its legal obligations under the Bank Secrecy Act and California law to verify customer identities and monitor suspicious activity.
Do you use Coinbase? Let us know what you think of the biometric data collection allegations.
The plaintiffs are represented by Mark R. Miller and Matthew J. Goldstein of Wallace Miller and Jonathan Gardner, Carol C. Villegas, Jonathan D. Waisnor, James M. Fee and Danielle Izzo of Labaton Keller Sucharow LLP.
The Coinbase class action lawsuit is Bernstein, et al. v. Coinbase Global Inc., et al., Case No. 1:25-cv-05313, in the U.S. District Court for the Northern District of Illinois.
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41 thoughts onCoinbase hit with privacy class action over biometric scans
I would like to be included in this law suit. I’ve used Coinbase recently and was required to scan my identification card as well as face scan.
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I have been a Coinbase customer for approximately 4 years and my data was compromised this past May. I would like to be involved in any action taken against Coinbase. I have had numerous attempts made to gain access to my accounts and spent time and money protecting my personal data and security.
am requesting to be added to the Coinbase data breach class action lawsuit. I was a victim of identity theft and fraud, which occurred as a direct result of my personal information being shared and compromised in the recent breach. I have used Coinbase for several years and was affected by the company’s inadequate protection of user data, which exposed my sensitive information — including name, Social Security number, bank details, and transaction history — to cybercriminals.
Due to this breach, my assets and personal security have been at risk. I have incurred costs with account recovery, unauthorized transactions, lost work hours, and the time spent on credit monitoring. I am seeking actual and statutory damages as a member of the impacted class, in accordance with the litigation filed in the U.S. District Court for the Northern District of California on behalf of all affected U.S. residents.
Please add me as a claimant and share any next steps to verify my eligibility or provide supporting documentation.
Thank you.
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Coinbase security is weak. Think twice before you invest your hard earned money with this company.
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