Kraken receives a court order to disclose user data to the Treasury Department as part of a tax investigation

The United States District Court for the Northern District of California has ordered cryptocurrency exchange Kraken to turn over account and transaction information to the Internal Revenue Service (IRS).abbreviated in English). The agency said it needed the information to determine whether any of the exchange’s users underreported taxes.

depending on the order issued On Friday, June 30th Kraken is required to provide data to users who have transacted over $20,000 in a calendar year.included Names (real or assumed), dates of birth, tax identification numbers, addresses, phone numbers, email addresses, and other documents.

In February, the IRS petitioned the court in the Northern District of California shortly after Kraken settled with the US Securities and Exchange Commission (SEC) over copyright infringement claims. Securities law relating to your service to mask. The IRS alleged that it issued a subpoena to Kraken in 2021, which the exchange failed to comply with, and is now seeking to investigate the tax liabilities of users who transacted cryptocurrency between 2016 and 2020..

next to, Kraken will be required to disclose blockchain addresses and transaction hasheswhich is already included in the transaction data available for sharing. The exchange may also be required to provide raw data to the treasury..

Judge Joseph Spiro, who presided over the case, appears to have Reject the IRS’s bid Obtains Kraken employment and wealth information source. The judge flatly denied many of the Treasury’s requests.

In his review of some IRS petitions, the judge stated this The court must determine whether the government subpoena was properly focusedWhich means that you should not go beyond what is necessary to achieve the desired goal.

According to the court’s conclusions: The information requested in the first three requests, which are intended to identify Kraken account holders who fall within the definition of a “Doe,” is very broad and goes beyond what most users need to identify themselves..

Friday’s ruling, which aligns with the government, comes amid increasing crackdown on cryptocurrency in the United States. In June, the Securities and Exchange Commission Separate lawsuits have been filed It accuses Coinbase of operating an illegal exchange and alleges that Binance mismanaged customer funds, misled investors and regulators, and violated securities regulations.

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