Kraken to Share 42,000 Users' Data with IRS Following Court Order
Summary:
Kraken, a US-based cryptocurrency exchange, announces its compliance with a court order to share details of 42,000 users with the IRS, following an order from a Northern District of California court. The data, to be sent in early November, pertains to clients who exceeded $20,000 in annual transactions from 2016 to 2020. This turn of events follows a similar situation in 2018 when Coinbase yielded to IRS demands, stirring a user to appeal against such actions.
Kraken, a United States-based cryptocurrency exchange, has announced that 42,000 users' information will be shared with the United States Internal Revenue Service (IRS), pursuant to a court order. The IRS will receive this user information in the early part of November. Kraken disclosed on its help desk page that a Northern District of California court order issued in May 2021 required the release of detailed records concerning its American clients to the IRS. Kraken initially resisted the IRS directive, arguing in court which led to a notable reduction in the client count and information amount deemed necessary. The court directed Kraken to provide personal and transactional data of clients who had annual transactions over $20,000 from 2016 to 2020, including those who didn't transact but only made deposits or withdrawals. The data to be released include details such as customer name, date of birth, tax ID, address, contact information and transaction history. Approximately 42,000 accounts will have their information shared with the IRS as a result. Meanwhile, the IRS's demand for user data from a crypto exchange is also being reviewed by the U.S. Court of Appeals for the First Circuit in another case. In 2018, Coinbase had informed 13,000 of its customers that it would be releasing their taxpayer ID, name, birth date, address, and transaction history from 2013 to 2015 to the IRS. One disgruntled user, James Harper, protested against such free access to user transaction histories by the U.S. government. In support of Harper's arguments, DeFi Education Fund (DEF), a crypto advocacy group, filed an amicus brief in October 2023.
Published At
10/30/2023 9:33:14 AM
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