A class-action lawsuit has been filed against Coinbase in Illinois, alleging the cryptocurrency exchange violated state biometric privacy laws. Plaintiffs claim Coinbase’s identity verification process, which includes facial recognition and data collection, violates the Biometric Information Privacy Act (BIPA). The lawsuit alleges Coinbase failed to inform users of their biometric data’s collection, storage, sharing, and retention schedule, as required by BIPA. 10,000 individuals have also filed arbitration demands regarding these issues with the American Arbitration Association, which Coinbase allegedly refused to pay fees for, leading to dismissals. The plaintiffs are seeking $5,000 per willful or reckless violation, $1,000 per negligent violation, as well as injunctive relief and litigation costs.