Kraken ordered by court to release user data to IRS for tax compliance

Kraken is required to provide details of users who have transacted over $20,000 in a calendar year. News Join us on social networks

The United States District Court for the Northern District of California ordered crypto exchange Kraken to report account and transaction information to the Internal Revenue Service (IRS). The agency said it needed this information to determine if any of the exchange's users had under-reported their taxes.

Pursuant to the order issued on Friday, June 30, Kraken is required to provide details of users who transacted over $20,000 in a calendar year, including names (real or pseudonyms) ), dates of birth, tax identification numbers, addresses, phone numbers, email addresses and various other documents.

In February, the IRS filed a lawsuit in the Northern District of California shortly after Kraken reached a settlement with the U.S. Security Exchange Commission (SEC) regarding alleged violations of security laws. securities related to its staking service. The IRS claimed it issued a subpoena to Kraken in 2021, which the exchange failed to comply with, and is now seeking to investigate the tax liabilities of users who made crypto transactions between 2016 and 2020.

Capture screenshot of court order requiring user data. Source: CourtListener

In addition, Kraken will be required to disclose