A class action lawsuit accuses Blockchain of violating Illinois's biometrics privacy law by scanning users' faces when they log in.
The company, as a virtual platform where users may trade, purchase, borrow and transfer crypto currency, requires customers to use facial geometry to verify their identities, states the lawsuit, filed in Cook County Circuit Court.
The lawsuit was filed on behalf of named plaintiff Candice Wilhelm, identified only as a resident of Illinois.
"Facial geometry scans are unique, permanent biometric identifiers associated with each user that cannot be changed or replaced if stolen or compromised," the lawsuit says. " Blockchain.com collects, stores, possesses, otherwise obtains, uses, and disseminates its users' biometric data."
Under the Illinois Biometric Information Privacy Act, companies must obtain a written release before collecting biometric data, the suit says.
"Blockchain.com did not inform Plaintiff in writing that Blockchain.com was collecting or storing her biometric information," the lawsuit claims. "In fact, Blockchain.com made no mention of biometric information, collection of biometric information, or storage of biometric information."
The suit, which seeks to represent all Illinois residents who had their biometric information collected by the company during the last five years,
is asking for $5,000 for each intentional violation of the law and $1,000 for each negligent violation plus attorney fees and court costs.
Damages under the BIPA law can quickly multiply to "astronomical" levels, as the Illinois Supreme Court has ruled that individual violations under the law should be defined as each time a biometric identifier is scanned, not just the first time. So, when multiplied across potentially thousands or millions of users, the payout faced by defendants like Blockchain could quickly climb far into the millions of dollars.
The plaintiffs are represented by attorney Michael L. Fradin, of Fradin Law of Athens, Ohio, and James L. Simon, of Simon Law Co., of Chagrin Falls, Ohio.