Coinbase faces lawsuit over biometric data privacy violations

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A lawsuit claims that Coinbase violated Illinois’ biometric privacy regulations by conducting Know Your Customer (KYC) checks and storing related data. On 1st May the case was filed in California District Court. The case alleges that Coinbase’s Know Your Consumer (KYC) compliance approach is “unlawful” and that consumers would have no protection against identity theft if the centralised company’s biometric data database was compromised. The case demands $5,000 in damages for each willful Biometric Information Privacy Act (BIPA) breach and $1,000 for each inadvertent violation. On the other hand, Cathie Wood’s Ark Invest added 129,604 Coinbase shares worth more than $6.4 million to its Ark Innovation ETF, 23,456 to its Ark Next Generation Internet ETF, and 15,809 to its Fintech Innovation ETF. Coinbase shares are currently selling at slightly more than $50 a share, up roughly 50% this year. Ark Invest is still beneficial on Coinbase stock and has partnered with 21Shares to try to get a spot bitcoin ETF approved.

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Celsius is being sued by its clients and Series B investors over allegations of inadequate record-keeping in its corporate structure. The company, whose CMC Network Limited branch had been advised by the UK’s Financial Conduct Authority to discontinue activities in the country, formed a Limited Liability Company in Delaware and attempted to transfer assets through a series of financial transactions. Internal records, on the other hand, are “sorely lacking,” making it difficult to separate the operations of each business. A committee of Celsius’ creditors has contended in parallel filings that the reorganisation was a “sham” and a “facade,” and that the billions of dollars transferred between the two corporations were dishonest. Judge Martin Glenn concluded on March 9 that customers only have rights against the Delaware LLC business, enhancing the possibilities that Series B preferred equity holders could collect some of their investment. Celsius declared bankruptcy in July 2022, and an auction of its assets is slated to resume on Wednesday, with favoured bidder NovaWulf now facing opposition from creditors.

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