The Controversy Unveiled
In a courtroom drama that could rival a Netflix series, Coinbase is under fire for allegedly mishandling biometric data, a situation that has sparked outrage and a proposed class-action lawsuit. It all started when a humble user, Michael Massel, decided that enough was enough and filed a suit in a California District Court on May 1.
The Heart of the Matter
The crux of the lawsuit revolves around the claims that Coinbase’s process for user verification violates Illinois’ Biometric Information Privacy Act (BIPA). To comply with Know Your Customer (KYC) regulations, Coinbase requires its customers to upload a photo of a valid ID and a selfie, effectively scanning face geometry and possibly fingerprints. Which begs the question: is your face really just a collection of pixels to them?
Legal Obligations Ignored?
According to the lawsuit, BIPA mandates that companies must obtain user consent for the collection of biometric data and clearly outline its purpose. Coinbase, the lawsuit claims, dropped the ball by failing to create a freely accessible policy detailing how long they would store this sensitive information, how it would be utilized, and crucially, how it would be destroyed once it was no longer needed.
The Privacy Risks
The stakes couldn’t be higher. The filing claims that Coinbase’s lack of a formal retention policy for this sensitive biometric data poses serious risks to its users. If hackers got their grubby little hands on a database filled with “highly detailed geometric maps” of faces, identity theft might rank as just one of our new problems to ponder. And who needs more stress, right?
Seeking Justice
Massel, who clearly believes in standing up for what’s right (or at least against biometric bad practices), is demanding damages of up to $5,000 for every intentional violation of the BIPA law. If that doesn’t sound like it could break the bank, then this case might just boil down to some serious cash and court costs for Coinbase.
Coinbase’s Silence Speaks Volumes
When approached for a comment, Coinbase chose, rather curiously, to keep mum. It seems when it comes to legal troubles, silence might just be their strategy. As this case unfolds, it’ll be interesting to see how they respond to these serious allegations about personal privacy.
