Coinbase Collected Face Scans of Users Without Consent, Violating Illinois Biometric Information Privacy Act, New Class-Action Alleges

Coinbase Global Inc. collected face scans of users of its cryptocurrency platform without their consent

Coinbase Global Inc. is being sued by three customers who claim the exchange used facial-recognition technology to collect their biometric identifiers as part of its user-verification system without their consent, in violation of the Illinois Biometric Information Privacy Act.

The plaintiffs, Scott Bernstein, Gina Greeder, and James Lonergan, are seeking to pursue claims on behalf of a class of Illinois residents. They are being represented by Labaton Keller Sucharow LLP and Wallace Miller.

The complaint, filed Monday in the U.S. District Court for the Northern District of Illinois, alleges that Coinbase used technology from third-party providers Jumio Corp. and Onfido in its facial-recognition system.

Coinbase didn’t immediately respond to a request for comment.

The plaintiffs’ attorneys filed more than 10,000 individual demands for arbitration with the American Arbitration Association in March and April. This led to the appointment of a process arbitrator for the handling of preliminary matters.

Coinbase argued that the claimants should be required to proceed in small-claims court in Illinois and a predispute resolution process prior to arbitration, and to provide additional declarations and information.

The process arbitrator denied the company’s requests, and AAA determined in March 2025 that it would charge fees according to its published fee schedule.

After Coinbase refused to pay the filing fees, AAA closed the arbitrations, leaving the plaintiffs free to pursue their claims in court.

The plaintiffs are seeking liquidated damages of $1,000 per negligent BIPA violation and $5,000 per intentional or reckless violation; injunctive and equitable relief; attorneys’ fees and costs; and pre- and post-judgment interest.