US courts stay in a Coinbase lawsuit containing biometric data

An Illinois judge has granted a motion to continue the lawsuit against Cryptocurrency Exchange Coinbase as the decision in the appeal court is pending.

In a filing Thursday in U.S. District Court for the Northern District of Illinois, Judge Sharon Johnson Coleman granted the claim filed by Coinbase to continue the lawsuit with alleged violations of the state’s biometric privacy laws.

The claim demanded that he await a decision from the US Court of Appeals for the Seventh Circuit. This is examining a case involving Nuance Communications, which provides voice identification technology to Charles Schwab, a decision that could affect the Coinbase litigation.

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Source: US District Court, Eastern Division, Northern District of Illinois

The lawsuit filed in May alleged that Coinbase’s Faceprints of FacePrints “wholesale collection” violated Illinois law due to customer (KYC) requirements because of the user’s failure to notify them. A group of Coinbase users also claimed that the exchange shared biometric data without consenting to third-party verification providers, which are violation of the law.

Related: Coinbase CEO looks at $1 million in Bitcoin, but let’s get $124,000 first, analysts say

Under Illinois’ Biometric Privacy Act, private companies that violate the law in a “reckless” or “intentional” way may be required to pay up to $5,000 for each instance and $1,000 for each negligent violation. The plaintiff also sought relief from the costs of the court proceedings.

Major Coinbase Data Breaches

In May, Coinbase revealed that a group of customer support contractors had access to user account data in exchange for bes. The India-based contractor was later fired.

The data breaches attempted to force Coinbase to $20 million worth of Bitcoin (BTC). However, the event prompted several lawsuits claiming that Coinbase was mishandling personal data.

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