US orders Kraken to hand over customer tax information


The District Court for the Northern District of California has ordered cryptocurrency exchange Kraken to provide the IRS with customer information.

The platform will have to disclose names, dates of birth, actual addresses, phone numbers and Tax ID users who made transactions in excess of $20,000 in a calendar year.

“The government has a legitimate purpose to search for the materials described,” Judge Joseph Spero said.

According to the documents, the IRS requested information to “identify and adjust the tax liabilities of US citizens who conducted transactions with cryptocurrencies in 2016-2020.”

The agency filed a related petition in February 2023, when Kraken settled charges filed by the U.S. Securities and Exchange Commission. Then the company emphasized that one of the guiding principles of the platform is to ensure the security and privacy of users.

Recall that in April, Kraken filed a lawsuit against the IRS. The company rejected the regulator’s right to receive information about customers and called the agency’s demands “an unjustified treasure hunt.”

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