Court Orders Kraken to Share User Data with IRS for Tax Compliance.

Kraken Ordered by Court to Disclose User Data to IRS

A US court has ordered cryptocurrency exchange Kraken to disclose user data to the Internal Revenue Service (IRS) in order to ensure tax compliance. The court order was issued in response to a petition from the IRS, which requested the exchange to provide information on users who conducted transactions worth more than $20,000 between 2016 and 2020.

The court order requires Kraken to provide the IRS with the names, addresses, taxpayer identification numbers, and other information related to the users who conducted transactions worth more than $20,000. The order also requires Kraken to provide the IRS with records of all transactions conducted by the users during the specified period.

Kraken has stated that it will comply with the court order and has already begun the process of providing the IRS with the requested information. The exchange has also stated that it will continue to protect the privacy of its users and that it will not provide the IRS with any information that is not explicitly requested in the court order.

Kraken’s Response to Court Order

Kraken has responded to the court order, stating that it will not comply with the request as it would violate the privacy of its customers. The exchange has also argued that the IRS has failed to provide sufficient evidence that the requested data is necessary for the purpose of tax compliance. Kraken has further stated that it will challenge the court order in court.