Kraken to Share User Data With IRS
Crypto exchange Kraken is set to share select user information with the Internal Revenue Service next month, following a court order received in June. The IRS-Kraken battle began in May 2021 when a federal court authorized the tax agency to serve a John Doe summons on Kraken and its subsidiaries.
The IRS claimed Kraken had failed to comply with the summons. In February, the tax agency filed a court document seeking permission to enforce the summons, and in June, a federal court ordered Kraken to turn over user information to the IRS.
Kraken must provide profile information and transaction histories for clients who conducted transactions exceeding $20,000 in any single year between 2016 and 2020. The IRS had initially sought more extensive information, including users’ IP addresses, employment details, sources of wealth, net worth, and banking information.
Kraken successfully convinced the court to “substantially reduce” the number of affected clients and the amount of client data it must produce. The reduced number appears to be 42,017, compared to the initial request of 59,331 Kraken users.
(With inputs from Shikha Singh)
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