Coinbase Lawsuit, a Privacy Disaster Waiting to Happen? Why Self-Custody Crypto Wallets Like Best Wallet are Safer

Less than a week since Coinbase’s hack, the crypto exchange is in the crosshairs again.

This time, it’s a class-action lawsuit filed by Illinois residents claiming that Coinbase had processed their biometric data without consent.

An excerpt from the filing alleges that this breaches Illinois’ Biometric Information Privacy Act (BIPA).

As if that wasn’t enough, Coinbase seems to have transmitted this data to third-party vendors (like Solaris and Jumio). Again, without the data subjects’ consent (allegedly).

The EU’s GDPR Enforcement Tracker comes to mind here. Websites and companies are fined on a daily basis for this exact thing—collecting personal data without consent.

Coinbase’s behavior (especially after the latest hack) is a privacy disaster waiting to happen. After all, it’s still your crypto and hard-earned money at risk.

Which begs the question – what’s a better way to store crypto? The answer is in non-custodial crypto wallets like Best Wallet.

You alone own the keys to your crypto, personal data collection is minimal (often just an email address), and you also get side benefits through the Best Wallet Token.

Below, we’ll explain Coinbase’s situation and how crypto wallets are a safer option.

Coinbase, Stop Hitting Yourself. Lawsuits Are Bad for You.

The lawsuit claims Coinbase asked users for a government ID and a selfie during the sign-up procedure. So far, so good. It’s a pretty standard process for a crypto exchange these days (unfortunately).

Here’s where the problems begin:

• Coinbase sent the data to third-party facial recognition tools,
• all without notifying the users that this would happen
• or asking for their consent to the data processing.

If this sounds familiar, that’s because it is. Back in May 2023, Coinbase received an identical lawsuit from another Illinois resident alleging a breach of the state’s BIPA.

By February 2025, the lawsuit still hadn’t been finalized – the complainant and Coinbase agreed to undergo arbitration (a private ruling by an independent arbitrator, not a full court trial).

Back then, Coinbase argued that the user had consented to the data processing when checking the ‘I agree to the User Agreement and Privacy Policy’ box during the sign-up procedure.

This allegedly voided the complainant’s justifications for the class action lawsuit.

Plus, the most important bit—another term the user had unwittingly accepted when checking that box is waiving his right to join a class-action lawsuit.

User Agreements never cease to surprise, right?

Storing your new crypto on Coinbase suddenly becomes somewhat sketchy. Exchange hacks also constantly threaten your asset security (see what happened with Bybit and 1inch).

Fortunately, solutions like Best Wallet solve this problem through self-custody, minimal data collection, and top-of-the-line encryption.

Best Wallet Doesn’t Treat You Like a Data Treasure Trove

In a world of Coinbases, you need the Best Wallet, one of the best anonymous, non-custodial crypto wallets available today. With Best Wallet, you can:

• Keep your sensitive information private
• Control your own private keys
• Buy, sell, and swap crypto on five major blockchains (Ethereum, Binance Smart Chain, Polygon, Bitcoin, and Base)
• Stake tokens at industry-high APYs (further boosted if you hold the Best Wallet Token)
• Invest in some of the best presales directly in the wallet app (a first in the industry) with occasional bonuses and airdrops
• Participate in a growing ecosystem with plans to support 60+ chains, launch a fiat Best Card, plus an NFT gallery, derivatives trading, and market intel analytics

Some of these features are only available to $BEST holders, which is why investing in the Best Wallet Token presale is the best way to get started with this crypto wallet.

Buying in will also get you reduced transaction fees, higher staking rewards, community governance, and early access to some of the best meme coins.

Security is handled through Fireblocks MPC, a cutting-edge cloud backup solution for multi-chain wallets like Best Wallet.

The presale has raised over $12.5M, and the token currently costs $0.025055 – you won’t get a cheaper price. In less than 12 hours, the price will increase again, so now’s the time to buy.

Another layer of rewards awaits you if you stake $BEST for a 116% APY (this will decrease as more people stake).

A simple calculation shows that buying 11,973 $BEST for $300 now and staking for an average 50% APY would lead to 17,959 tokens in a year (or $450 at the current token price).

But our Best Wallet price prediction also indicates a $0.62 price by the end of 2026. So that $300 investment could turn into $11,140, a 37x increase. That’s a tidy sum, if the price estimate holds true.

To Sum Up: Coinbase Nay, Self-Custody Crypto Wallets Aye

Coinbase’s second screw-up in a row leaves a bad taste in the mouth. It’s sad to see how often data privacy and asset security are put on the back burner as exchanges pursue maximum profit.

The lesson is that the only person you can trust is yourself. And that’s exactly what self-custodial wallets like Best Wallet let you do—they put you in control of your data and funds and reward you for it.

Don’t forget to do your own research before investing in crypto and presales. The market is volatile and prone to immediate fluctuations. Only invest what you can afford to lose!