A federal judge in Illinois has temporarily paused legal proceedings against cryptocurrency exchange Coinbase, accused of violating biometric privacy laws, pending a ruling in a related case.
Lawsuit Pause
U.S. District Judge Sharon Johnson Coleman granted Coinbase's request to pause the lawsuit to simplify issues, reduce litigation burdens, and not unfairly disadvantage the plaintiffs.
Allegations Against Coinbase
A group of Coinbase users claims the exchange failed to adequately notify them about the collection and sharing of faceprints during identity checks, violating Illinois' Biometric Information Privacy Act (BIPA). Under state law, companies can face damages up to $5,000 for reckless or intentional violations.
Data Security Issues
Coinbase is also facing data security challenges. In May, the company revealed that contractors in India had accepted bribes to leak account information, leading to multiple lawsuits. The group behind the breach attempted to extort $20 million in bitcoin for ransom.
The Illinois case adds to Coinbase's ongoing legal battles related to compliance and regulatory scrutiny in the U.S.
