Coinbase Sued for Alleged Unauthorized Biometric Data Use

Coinbase is facing a lawsuit filed on May 13, 2025, in the U.S. District Court for the Northern District of Illinois for allegedly collecting biometric data without consent.

The lawsuit underscores concerns about biometric data privacy and potential impacts on the crypto industry.

Coinbase faces allegations of unauthorized biometric data collection, leading to a class-action lawsuit. Filed in Illinois, the plaintiffs claim Coinbase violated the Illinois Biometric Information Privacy Act. The lawsuit involves over 10,000 people and asserts reckless data handling by Coinbase during user identity verification. Lead plaintiffs include Scott Bernstein, Gina Greeder, and James Lonergan. Third-party vendors, including Jumio and Onfido, reportedly involved.

The plaintiffs allege harm due to unauthorized biometric data collection methods. There are concerns about potential privacy breaches, and financial penalties could affect Coinbase significantly. “We believe that Coinbase’s actions constitute a clear violation of the Illinois Biometric Information Privacy Act,” said Scott Bernstein, Lead Plaintiff. Legal repercussions remain unclear for Coinbase as the lawsuit progresses.

Coinbase’s refusal to resolve arbitration may influence industry-wide protocols on data privacy. Failure to address these concerns may undermine user trust. Potential outcomes could set precedents for how cryptocurrency exchanges manage biometric data, impacting regulatory policies and technological approaches.