BAM: Binance’s BIPA Case Goes to Arbitration

A biometric privacy lawsuit against Binance is going to arbitration, thanks to a new ruling.

Plaintiff Candice Wilhelm sued BAM Trading Services, Inc., the operator of Binance.US, alleging that BAM collected, stored, used, and disclosed her biometric information without proper consent, in violation of Illinois’s Biometric Information Privacy Act (BIPA).

BAM sought to compel arbitration and dismiss the case, arguing that Wilhelm had agreed to arbitration through the Binance.US Terms of Use when she created her account and through subsequent amendments.

Wilhelm created her Binance account in February of 2021, and was prompted to allow BAM to collect her facial geometry for identity verification. BAM argued that all users, including Wilhelm, agreed to arbitration by checking a box during the registration process, indicating acceptance of the Terms of Use. These Terms included an arbitration provision requiring disputes to be arbitrated according to the American Arbitration Association’s rules.

BAM provided evidence, including a screenshot of the registration page and a declaration from BAM’s Chief Operations Officer, to support its claim that Wilhelm agreed to the Terms when she created her account.

Wilhelm contested that she had never agreed to the Terms of Use, including the arbitration clause, when she created her account and claimed she was unaware of any amendments. However, the court found no genuine dispute of fact regarding Wilhelm’s acceptance of the October 2020 Terms. The court also agreed with BAM that the delegation provision included in the Terms since September 2022, which mandates that threshold issues about the arbitration agreement’s validity and scope be resolved in arbitration, was valid.

The court granted BAM’s motion to compel arbitration but denied its request to dismiss the case and for attorney’s fees and costs. The case is stayed pending arbitration, with a status report on the arbitration proceedings due by September 30, 2024.

Source: Bloomberg Law

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May 22, 2024 – by Cass Kennedy