Coinbase has been accused of illegally collecting biometric data. Residents of Illinois have filed a class action lawsuit against Coinbase. They are accused of collecting biometric data (including facial scans) during KYC identification without consent. The plaintiffs claim that Coinbase did not disclose the purposes, retention periods of the data, and failed to provide an option to opt-out of such procedures. The information was allegedly shared with third-party contractors — also without permission. According to the BIPA law, penalties of up to $5000 for each violation are provided for such actions.

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