Kraken ordered by court to disclose user data to IRS for tax compliance

A federal court ordered crypto exchange Kraken to turn over account and transaction information to the Internal Revenue Service (IRS), which said it needed that information to see if any of the exchange’s users had underreported their taxes.

As per the order

According to the Court’s findings, the information sought in the first three requests, which aim to identify Kraken account holders falling within the Doe definition, is overly broad and exceeds what is necessary for the majority of Doe users to establish their identities.

Friday’s ruling siding with the government comes amid a deepening US crackdown on cryptocurrency. The Securities and Exchange Commission this month filed separate lawsuits accusing Coinbase of running an illegal exchange and alleging that Binance.US mishandled customer funds, misled investors and regulators and broke securities rules.

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