Class Action Claims Blockchain (US), Inc. Illegally Collected Biometrics of Over 1,000 Illinois Residents

On Friday, March 8, 2024, Candice Wilhelm filed a class action lawsuit against Blockchain (US), Inc., one of the largest cryptocurrency companies in the United States, alleging violations of Illinois’ Biometric Information Privacy Act (BIPA).

Wilhelm, an Illinois resident, claims in her complaint that Blockchain collected her biometric data, such as fingerprints and facial scans, without obtaining her consent as required by BIPA. She alleges the company violated three sections of the law by failing to provide written disclosure about its biometric data retention policies, failing to inform users in writing that it was collecting biometric data, and improperly disclosing and disseminating users’ biometric information.

Wilhelm is seeking to represent a class of over 1,000 Illinois residents whose biometrics Blockchain allegedly collected without following BIPA guidelines over the past five years. The proposed class could be entitled to significant statutory damages if the court finds Blockchain intentionally or recklessly violated the law. BIPA allows for penalties of $5,000 for each intentional or reckless violation and $1,000 for each negligent violation.

Given the large class size and potential for multiple violations per user, Wilhelm asserts the class’ damages could exceed the $5 million threshold for federal jurisdiction. Her complaint was originally filed in Illinois state court but Blockchain quickly removed the case to federal court, invoking jurisdiction under the Class Action Fairness Act.

In its removal filing, Blockchain denies any wrongdoing but acknowledges the potential damages could plausibly surpass $5 million based on Wilhelm’s class size estimate and statutory penalty requests. The company maintains that removal is appropriate since there is diversity of citizenship between Wilhelm, an Illinois resident, and Blockchain, which is incorporated in Delaware and headquartered in Florida.

The lawsuit is presently in the early stages and pending before a federal district court in Illinois. Legal experts will be watching the case closely as it could have significant implications for how cryptocurrency and biometric data privacy laws intersect going forward.

Please contact BlockTribune for access to a copy of this filing.