Coinbase Surges on Court Pause in BIPA Lawsuit Trading Volume Soars 138% to Rank 18th in Market Activity

On August 22, 2025, Coinbase Global (COIN) surged 6.52% with a trading volume of $4.13 billion, a 138.3% increase from the prior day, ranking 18th in overall market activity. The rally coincided with a U.S. court decision to temporarily pause a class-action lawsuit against the exchange over alleged violations of Illinois’ Biometric Information Privacy Act (BIPA). The court, led by Judge Sharon Johnson Coleman, granted Coinbase’s motion to stay proceedings pending a ruling from the Seventh Circuit Court of Appeals on a related case involving Nuance Communications and Charles Schwab. The judge cited potential legal clarity from the appellate decision, which could streamline the trial and reduce litigation burdens for all parties.

The BIPA lawsuit, filed in May 2025, alleges Coinbase collected and shared users’ biometric data—such as faceprints—for Know Your Customer (KYC) purposes without proper consent. Under BIPA, violations could incur damages up to $5,000 per instance for reckless or intentional breaches, alongside $1,000 for negligent violations. Coinbase argued the stay would align its case with the appellate court’s review of financial institution exemptions, a legal precedent that could broadly impact fintech firms using biometric authentication. The court emphasized the stay would not prejudice plaintiffs, as the appellate ruling is expected within a reasonable timeframe.

Separately, Coinbase disclosed in May that customer support contractors in India accessed user account data for financial gain, prompting additional lawsuits over data mishandling. While the breach did not involve biometric data, it highlighted regulatory scrutiny over the exchange’s data practices. Illinois’ recent crypto regulations, including the Digital Assets and Consumer Protection Act, have further intensified oversight, requiring exchanges to enhance cybersecurity and transparency measures.

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