IRS To Obtain Identities Of 14,355 Cryptocurrency Users

A court in California ordered a cryptocurrency exchange to hand over the identities of thousands of users this week to the Internal Revenue Service (IRS).

Coinbase, one of the internet’s most popular sites for selling and buying digital currencies such as Bitcoin, must give the federal government the names, birthdates, addresses and account activity of 14,355 users.

Although the IRS originally attempted to obtain records for every user on Coinbase, the year-long court battle ended with users who bought, sold, sent or received more than $20,000 worth of cryptocurrency being targeted.

The IRS argued that despite those nearly 15,000 users dealing in large qualities of cryptocurrency, only “800 to 900 taxpayers a year have electronically filed returns” mentioning digital currencies between 2013 and 2015.

Coinbase Co-Founder and CEO Brian Armstrong pushed back against the federal government’s inquiry in January prior to the ruling.

“Asking for detailed transaction information on so many people, simply for using digital currency, is a violation of their privacy, and is not the best way for us to accomplish our mutual objective,” Armstrong wrote.

Following the ruling, Coinbase’s David Farmer stated the company was “proud to fight for our customers and in the result we were able to achieve as a small company against a large government agency.”

Coinbase has said it will inform any users prior to handing their information over to the IRS.

With Bitcoin surpassing $11,000 in value on Wednesday before sliding back down to $9,000, users of cryptocurrency are expecting the federal government to take a larger interest.

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  • HWR
  • Zaphod Braden

    Anything that can be programmed can be hacked …. millions of bitcoins stolen by hackers ….. they carry a record of every transaction …. you pay a FEE on every use… they are a fool’s game.

  • Occams

    Need the funds for ISIS and our other proxy armies and phony wars….

    • Milly Vanilly

      ….And to help fund & pay legal fees for all the political pedophiles & criminals to CONTINUE their Mental Illnesses at the taxpayers expense.

  • Milly Vanilly

    BUT, but but….the IRS is NOT a Federal agency….it is a PRIVATE Owned CORPORATION. that is like Burger King demanding all your personnel information & all your money. The country has been so INDOCTRINATED in the propaganda that has been spoon fed over the YEARS that NO ONE even questions the Legality ANYMORE.
    the globalists have pussified the Sheeple to such an extent that NO ONE dares question this ABUSE & Criminality.

    • Jack Lee

      So they can be ignored, thanks

      • Milly Vanilly

        TECHNICALLY, yes but you have to be smart & careful HOW you go about.
        Judges are afraid to go against the IRS & IF push comes to shove a judge will USE ‘precedence’ already previously set to go against ANY Illegalities in the statutes.
        The system IS rigged & has been for a LONG time and going against the IRS UNFORTUNATELY would have to be a concentrated effort by (ILLEGAL) taxpayers in mass. Educating yourself you can find ways around it, but not easy.

  • Inretrospect

    There’s never privacy or anonymity when you are a registered user. And whether you are dealing in medicinal cannabis or cryptocurrencies, you are breaking the Law if you’re not paying sales’ tax.

  • Ken Scott

    I have crypto in Coinbase but I am not American so they will not allow me to deal in fiat. If I was American I would not use any U.S. based exchange for the simple fact that they can be compelled to turn over data…The IRS is going after the tax avoiders that don’t have the connections or power to use the offshore tax-havens(see Panama Papers, Paradise Papers, etc.). The act of converting bitcoin to U.S. dollars is where a capital gain/loss occurs, if you have done this on Coinbase and not reported that gain you will be caught…