- On Monday, May 1st, the investor filed a lawsuit in Delaware Chancery Court.
- Coinbase is being sued for allegedly breaking Illinois’ biometric privacy legislation.
Coinbase (NASDAQ: COIN) officials, including Chairman and CEO Brian Armstrong, have been named in a new lawsuit. It is alleged that they used insider knowledge to profit by $1 billion. During the stock’s public debut two years ago.
On Monday, May 1st, the investor filed a lawsuit in Delaware Chancery Court. The investor further claims that the company’s board opted for a less common direct listing. Rather than a conventional listing through an IPO.
Moreover, $2.9 billion in Coinbase stock was quickly liquidated before management revealed negative data that affected market optimism from the firm’s first quarterly earnings release.
The investor is demanding the restoration of “ill-gotten gains” from Coinbase co-founder Brian Armstrong in a derivative case filed in a Delaware court. Other Coinbase executives and the co-founder of VC powerhouse Andreessen Horowitz are also named in the lawsuit.
Sued For Breaking Biometric Privacy Law
Another complaint against Coinbase was filed in San Francisco federal court on Monday. Coinbase is being sued for allegedly breaking Illinois’ biometric privacy legislation by collecting customers’ fingerprints and facial templates.
The crypto exchange is accused in a lawsuit of collecting customers’ facial data via government-issued IDs and pictures supplied by new users as part of the registration process. Coinbase clients’ fingerprint information was collected using biometric authentication, the complaint says.
Customers’ permission is required to collect biometric data by law in Illinois, according to the groundbreaking Illinois Biometric Information Privacy Act. They must also let consumers know how long their data will be kept.
Additionally, the lawsuit claims that users would be put at risk of “serious and irreversible privacy risks,” such as identity theft in the event of a data breach, due to Coinbase’s collection and storage of this information.
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