In a classic case of “Big Brother is watching you,” popular cryptocurrency exchange Coinbase is facing a proposed class-action lawsuit over alleged violations of biometric privacy laws in Illinois. The lawsuit, filed by a Coinbase user on May 1 in a California District Court, claims that the exchange’s collection and storage of customer fingerprints and facial templates is in violation of Illinois’ Biometric Information Privacy Act (BIPA).

The lawsuit alleges that Coinbase’s requirement for customers to upload pictures of a valid ID and a self-portrait for Know Your Customer (KYC) checks violates BIPA’s provisions regarding the collection and storage of biometric data. BIPA, which was enacted in 2008, requires companies to obtain written consent from individuals before collecting, storing, or using their biometric information, such as fingerprints or facial recognition data.

The lawsuit claims that Coinbase did not obtain proper consent from customers before collecting their biometric data, and that the exchange did not provide sufficient information about how the data would be used or stored. The lawsuit seeks damages of $5,000 per violation, or $1,000 for each negligent violation, for each individual affected by Coinbase’s alleged privacy violations.

This isn’t the first time Coinbase has been accused of privacy violations. In 2019, the exchange was hit with a similar lawsuit in which plaintiffs claimed that Coinbase’s use of third-party analytics software violated their privacy rights. That lawsuit was ultimately settled for $1.4 million.

Coinbase has not yet responded to the latest lawsuit, but the exchange has previously stated that it takes the privacy and security of its customers’ data seriously. The exchange has implemented various measures to protect customer data, such as two-factor authentication and encryption of sensitive information.

However, the lawsuit highlights the growing concern over the collection and use of biometric data by companies, particularly in the financial industry. As more companies turn to biometric authentication for security purposes, questions have arisen about the legal and ethical implications of collecting and storing such sensitive information.

In Illinois, BIPA has become a focal point for biometric privacy lawsuits, with dozens of companies facing legal action over alleged violations of the law. Companies such as Facebook, Google, and Clearview AI have all been sued under BIPA, with some cases resulting in multi-million dollar settlements.

As for Coinbase, the lawsuit is still in its early stages, and it remains to be seen whether the exchange will be held liable for any alleged privacy violations. But the case serves as a reminder to all companies that the collection and use of biometric data must be done in a transparent and ethical manner, with the proper consent and safeguards in place to protect individuals’ privacy rights.