TechFlow news, according to Fortune, U.S. cryptocurrency exchange Kraken may hand over transaction data of traders with transactions reaching $20,000 or more to the Internal Revenue Service (IRS). Previously, the IRS had requested user information from Kraken, but the exchange refused to cooperate, prompting the IRS in February this year to ask a federal judge to enforce a subpoena issued to its parent company, Payward Ventures Inc. After months of legal dispute, the judge ruled in favor of the IRS last Friday and ordered enforcement of the subpoena.
The judge stated: "The IRS is conducting an investigation to determine whether U.S. taxpayers using cryptocurrency are complying with domestic tax laws. To advance this investigation, this court approves the issuance of a subpoena to Payward Ventures." Kraken opposed the IRS subpoena, calling its investigation a "fishing expedition."
According to the court ruling, Kraken is now obligated to provide approximately 160 million transaction records and information related to 59,351 accounts. While Kraken’s lawyers argued that this would impose an undue burden, the judge noted, "A subpoena requesting relevant records will not be quashed merely because it requires the production (or search) of a large volume of documents, or causes the taxpayer significant time and expense."
