Kraken Ordered to Provide User Information to IRS
Adekunle Joshua
Cryptocurrency exchange Kraken has been directed by the U.S. District Court to provide a wide range of user information to the Internal Revenue Service (IRS)
The ruling, made in the Northern California District Court, has significant implications for Kraken's users
Full documentation must be provided for any Kraken user who bought, sold, or traded at least $20,000 worth of cryptocurrency between 2016 and 2020
The documentation includes name, taxpayer identification number, physical address, and phone number
Karen Cincotta, the IRS agent leading the case, revealed that Kraken accounts for over 4 million users and has processed $140 billion since its establishment in 2011
Despite this, only 288,330 clients have filed official tax returns, highlighting the significant gap between trading activity and reported taxes
While a judge initially pushed back against the IRS's demands to review Kraken's records, a higher court later allowed the agency to proceed.
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