Labaton alleges that Coinbase is violating the privacy of its users in Illinois by collecting biometric data before users can set-up an account. Coinbase asks its users to verify their identities by uploading photos of themselves and their government issued IDs without first notifying its users and obtaining written consent.

The biometric data that Labaton alleges Coinbase is collecting is in the form of face scans, which are unique to individuals – no two individuals have the same one. Because this data is so unique, there are heightened protections around it. We believe that Coinbase has ignored the protections implemented by Illinois lawmakers through its collection of users’ biometric data without first notifying its users and obtaining written consent, which we intend to prove in arbitration.

Labaton is pursuing private arbitration claims against Coinbase on behalf of its users whose biometric information was collected without the disclosures, consent, and data protection procedures Illinois law requires. Successful claims may be entitled to compensation of up to $5,000.