“[T]he Court finds that the stay would simplify the issues and streamline the trial [...] reduce the burden of litigation on the Court and the parties [...] [and] would not unduly prejudice or tactically disadvantage Plaintiffs,” said the Thursday filing granting Coinbase’s motion.
Source: US District Court for the Northern District of Illinois, Eastern Division
The lawsuit, filed in May, alleged that Coinbase’s “wholesale collection” of faceprints for its Know Your Customer (KYC) requirements violated the Illinois law, as users weren’t notified. The group of Coinbase users also alleged that the exchange shared their biometric data without their consent to third-party verification providers, which was a violation of the law.
Related: Coinbase CEO sees $1M Bitcoin, but let’s hit $124K first, Analyst says
Under Illinois’ Biometric Information Privacy Act, private entities that violate the law in a “reckless” or “intentional” manner may be required to pay damages up to $5,000 for each instance, as well as $1,000 for each negligent violation. The plaintiffs also sought relief for litigation expenses.
Major Coinbase data breach
In May, Coinbase disclosed that a group of customer support contractors accessed account data for users in exchange for bribes. The contractors, based in India, were later fired.
The individuals responsible for the data breach attempted to extort $20 million worth of Bitcoin (BTC) from Coinbase, which the company refused. However, the event prompted several lawsuits alleging that Coinbase mishandled personal data.
Magazine: Coinbase hack shows the law probably won’t protect you: Here’s why
cointelegraph.com
