Crypto Exchange Platform Binance.US Hit with Class Action Over Alleged Biometric Privacy Violations [UPDATE]
Last Updated on June 24, 2024
Wilhelm v. BAM Trading Services, Inc.
Filed: October 13, 2023 ◆§ 1:23-cv-14906
A class action claims the company behind cryptocurrency trading platform Binance.US has unlawfully captured, stored and shared with third parties users’ biometric data without consent.
Illinois
June 18, 2024 – Binance BIPA Lawsuit Sent to Arbitration
A federal judge has ordered the plaintiff in the proposed class action lawsuit detailed on this page to handle her claims individually before an arbitrator.
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United States District Judge Manish S. Shah granted BAM Trading Services’ motion to compel arbitration in a 13-page order signed on May 20, 2024, finding that the plaintiff had agreed to an arbitration clause when she created her Binance account in February 2021.
Per Judge Shah, the defendant submitted a screenshot of Binance’s account creation page, which shows a checkbox users must select to register account and confirms that they agree to the platform’s terms of use. The terms include a provision requiring all consumers to arbitrate any dispute related to their use of the Binance platform, the order relays.
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A proposed class action claims the company behind cryptocurrency trading platform Binance.US has unlawfully captured, stored and shared with third parties users’ biometric data without consent.
Want to stay in the loop on class actions that matter to you? Sign up for ClassAction.org’s free weekly newsletter here.
The 11-page lawsuit alleges that BAM Trading Services, Inc. has violated Illinois’ Biometric Information Privacy Act (BIPA) by collecting and disseminating scans of Binance.US users’ facial geometries upon login without first obtaining informed consent to do so.
The suit also accuses the company of failing to disclose how long and for what purpose the biometric information would be stored and used and when it would be permanently destroyed, in violation of the BIPA.
The plaintiff says that upon opening her Binance.US account and logging in, she was prompted to allow the platform to collect her facial geometry for identity verification purposes.
According to the case, the platform “recommends users to utilize the facial screening software on their cellular devices in order to ensure a more secure login experience” on the mobile app.
However, at no point did the plaintiff provide the company with consent to capture, store and share her biometric data, nor was she ever informed through a written policy why or for how long the defendant would keep the information, or if it would be permanently deleted, the complaint claims.
Binance.US’s unlawful capture and retention of BIPA-protected biometric data is “not unique” to the plaintiff but is part of a uniform practice applied to all consumers who use the platform, the filing alleges.
The lawsuit looks to represent all Illinois residents whose biometric information was collected by BAM Trading Services, Inc. at any point in the past five years.
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