US Court green-lights IRS to investigate user records from Coinbase

Crime | December 2, 2016 By:

The Internal Revenue Service (IRS) has been granted the permission to serve a summons on Coinbase to disclose its customer records in order to investigate probable tax fraud by its users.

In an order dated 30th November, Judge Jacqueline Scott Corley sided with a request filed earlier this month by the IRS as part of its bid to investigate alleged tax violations in the US pertaining or connected to digital currency use.

In its response to the court’s order, Coinbase issued a statement saying:

“We are aware of, and expected, the court’s ex parte order today. We look forward to opposing the DOJ’s request in court after Coinbase is served with a subpoena. As we previously stated, we remain concerned with our US customers’ legitimate privacy rights in the face of the government’s sweeping request.”

Coinbase is a digital currency wallet and platform based in San Francisco.