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Coinbase Faces New Legal Challenges Over Data Privacy
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In less than a week since a significant security breach, Coinbase finds itself embroiled in another controversy. A class-action lawsuit, initiated by residents of Illinois, accuses the cryptocurrency exchange of processing biometric data without obtaining proper consent. This action allegedly contravenes the Illinois Biometric Information Privacy Act (BIPA), as noted in a recent court filing.
The lawsuit further suggests that Coinbase may have shared this sensitive data with third-party services such as Solaris and Jumio, again without the necessary user permission. This situation echoes the stringent data protection standards enforced by the EU’s General Data Protection Regulation (GDPR), which frequently penalizes companies for unauthorized personal data collection.
In the wake of the recent hack, Coinbase’s handling of user data raises significant privacy concerns. With users’ cryptocurrency and financial assets potentially at risk, the question arises: what is the safest method to store crypto assets? The answer lies in non-custodial crypto wallets, such as Best Wallet, which prioritize user control over their assets and personal data.
Understanding the Legal Implications for Coinbase
The current lawsuit highlights that Coinbase required users to submit a government-issued ID and a selfie during registration. While this is a common practice among crypto exchanges, the issue arises from Coinbase’s alleged sharing of this data with third-party facial recognition services without user notification or consent.
Coinbase previously faced a similar lawsuit in May 2023 from another Illinois resident, citing a breach of BIPA. Although the lawsuit remained unresolved by February 2025, both parties agreed to arbitration, bypassing a full court trial. Coinbase argued that users had implicitly consented to data processing by agreeing to the User Agreement and Privacy Policy during registration, which supposedly nullified the basis for a class-action lawsuit.
These ongoing legal challenges highlight the potential risks of storing cryptocurrencies on exchanges. Security breaches, like the ones experienced by Bybit and 1inch, further emphasize the importance of secure asset management. Fortunately, solutions like Best Wallet offer enhanced security through self-custody, minimal data collection, and advanced encryption techniques.
The Best Wallet: A Secure Alternative
In a landscape dominated by exchanges like Coinbase, Best Wallet stands out as a premier anonymous, non-custodial crypto wallet. It offers users the ability to:
- Preserve the confidentiality of sensitive information
- Maintain full control over their private keys
- Conduct transactions across major blockchains, including Ethereum, Binance Smart Chain, Polygon, Bitcoin, and Base
- Earn industry-leading annual percentage yields (APYs) through token staking, enhanced for holders of the Best Wallet Token
- Participate in exclusive presales directly within the wallet app, benefiting from bonuses and airdrops
- Engage with a rapidly expanding ecosystem that plans to support over 60 blockchains, launch a fiat Best Card, and introduce features like an NFT gallery, derivatives trading, and market insights
Ownership of the Best Wallet Token ($BEST) unlocks additional features, such as reduced transaction fees, increased staking rewards, community governance, and early access to promising meme coins. Security is fortified through Fireblocks MPC, a state-of-the-art cloud backup solution for multi-chain wallets.
The ongoing token presale has already amassed over $12.5 million, with tokens currently priced at $0.025055. As prices are set to rise imminently, now is an opportune time to invest. Staking $BEST for a 116% APY provides an attractive return, which will adjust as more users participate.
For instance, purchasing 11,973 $BEST for $300 and staking at an average 50% APY could yield 17,959 tokens in a year, translating to $450 at the current price. With a projected price of $0.62 by the end of 2026, that initial investment could potentially grow to $11,140, representing a 37-fold increase if the forecast holds true.
Conclusion: Transitioning to Self-Custody Crypto Solutions
Coinbase’s repeated data mishandlings underscore the importance of prioritizing data privacy and asset security. Self-custodial wallets like Best Wallet empower users to control their funds and personal data, offering enhanced security and rewards.
As always, conduct thorough research before investing in cryptocurrencies and presales, given the market’s inherent volatility. Invest responsibly, considering only what you can afford to lose.
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