An Illinois judge has approved a motion to pause proceedings in a lawsuit against cryptocurrency exchange Coinbase while awaiting a ruling from the appellate court.
In a filing on Thursday at the US District Court for the Northern District of Illinois Eastern Division, Judge Sharon Johnson Coleman granted a motion by Coinbase to pause a lawsuit concerning alleged breaches of the state’s Biometric Information Privacy Act.
This motion requested a delay until the US Court of Appeals for the Seventh Circuit rules on a case involving Nuance Communications, which provides voice identification technology for Charles Schwab — a decision that could influence the Coinbase case.
“[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,” stated the Thursday filing approving Coinbase’s motion.
Source: US District Court for the Northern District of Illinois, Eastern Division
The lawsuit, initiated in May, claimed that Coinbase’s “wholesale collection” of faceprints for its Know Your Customer (KYC) protocols breached Illinois law, as users weren’t informed. The group of Coinbase users also accused the exchange of sharing their biometric data without consent with third-party verification providers, violating the law.
Related: Coinbase CEO sees $1M Bitcoin, but let’s hit $124K first, Analyst says
According to Illinois’ Biometric Information Privacy Act, private entities found to have violated the law in a “reckless” or “intentional” way may be liable for damages of up to $5,000 for each occurrence, along with $1,000 for each negligent breach. The plaintiffs also sought compensation for litigation costs.
Major Coinbase data breach
In May, Coinbase revealed that a group of customer support contractors accessed user account data in exchange for bribes. The contractors, located in India, were subsequently fired.
The individuals behind the data breach attempted to extort $20 million in Bitcoin (BTC) from Coinbase, which the company declined. However, this incident led to multiple lawsuits alleging that Coinbase mishandled personal data.
Magazine: Coinbase hack shows the law probably won’t protect you: Here’s why
