- The complainant demands that the exchange destroy data obtained to verify KYC
- Before, the company paid a hefty fine and spent $50 million to refine the system
Yesterday, May 1, a Michael Massel filed suit in California District Court against Coinbase.
In it, he claimed that the exchange violated Illinois’ user biometrics privacy laws by collecting data through KYC procedures.
For review of the document, click here. Note that Massel cites the Illinois Biometric Information Privacy Act (BIPA).
In accordance with it, any counterparty that collects and stores data from the category above must first obtain user permission.
Coinbase did not.. Consequently, the exchange violated the rights of its customers.
Coinbase, however, like most CEX, requires that the user is verified. This involves uploading scanned copies of documents and “selfies.”
Massel was outraged that he was required to go through this procedure without specifying how the information would be used or where it was stored.
The plaintiff demands that the exchange immediately destroy the biometric data obtained after verifying the customer.
Coinbase has not yet commented on the document.. Interestingly, in January of this year alone, the exchange paid a $50 million fine because of “not good enough” KYC procedures.
The platform has invested an equal amount more in fine-tuning the system.Also earlier today, on May 2, we reported on another lawsuit against Coinbase.
Exchange management is accused of using insider information to trade shares.
The management of the exchange is accused of using insider information to trade shares.