Kraken Fights IRS Request for User Data; Seeks Federal Court Intervention
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Cryptocurrency exchange Kraken is challenging the Internal Revenue Service’s (IRS) requests for user data, considering them an unnecessary intrusion. Kraken argues that the IRS’s demands are an “unwarranted search for hidden treasures” and that the government may be attempting to extract more money from the exchange than necessary.
Cryptocurrency exchange Kraken challenges the Internal Revenue Service’s (IRS) requests for user data, claiming the demands represent an unwarranted intrusion and asking a federal court to intervene. pic.twitter.com/CabvgaaQSf
— Manvel – cryptocurrency expert (trading) ₿ (@manvel_mamoyan) April 26, 2023
The IRS is reportedly investigating users who may be underreporting their tax debts. Kraken has sought a federal court order in San Francisco to halt the investigation.
Kraken, a cryptocurrency exchange, has sued the IRS.
— COINHAPS (@CoinHaps) April 27, 2023
The IRS requested information on Kraken accounts that engaged in at least $20,000 worth of cryptocurrency trades per year between 2016 and 2020. Kraken claims that the IRS’s demands exceed the limits set by U.S. District Judge Jacqueline Scott Corley in a related case with Coinbase six years ago.
Since when did the FBI, the IRS or any other government agency get big enough to ignore the will of We the People and the congress we elected
They should turn over whatever information congress requested forthwith or go to jail
Big government at its finest, too big to control— Charlie Daniels (@CharlieDaniels) December 29, 2017
Judge Corley ultimately concluded that a contract covering over 14,000 people was not overly intrusive, given the IRS’s legitimate interest in investigating taxpayers concealing their bitcoin income.
The fact that Judge Corley doesn't want to discuss the merits at the May 12 hearing strongly suggests she believes she won't even have to reach them. No irreparable harm would be dispositive.
Finally, here's the two-page order:https://t.co/GDBx6rtJJB
🧵8/8
— Florian Mueller (@FOSSpatents) April 13, 2023
Kraken recently agreed to pay $30 million to settle Securities and Exchange Commission (SEC) charges that the company’s staking service involved an unauthorized sale of securities. Judge Corley has scheduled a hearing next month to review the arguments presented in Kraken’s objection.
