Bitcoin Exchange Ordered to Give IRS Years of Data on Millions of Users

On Wednesday , a federal justice clear a bidding requiring Coinbase , America ’s largest Bitcoin Robert William Service , to ply the IRS withthe records of every user who traded on the sitebetween 2014 and 2015 . Covering the identities and dealing histories of millions of costumer , the requestis believed to bethe heavy single endeavour to place taxation evaders using virtual up-to-dateness to date .

As a so - called “ John Doe ” process , the document targets a particular group or course of taxpayers — rather than individuals — the agency has a “ reasonable basis ” to conceive may have broken the practice of law . accord to The New York Times , the IRS argued that two shell of revenue enhancement nonpayment involving Coinbase combine with Bitcoin ’s “ relatively gamy horizontal surface of namelessness ” serve as that base .

“ There is no allegement in this suit that Coinbase has lease in any wrongdoing in connection with its virtual currency telephone exchange business , ” said the Justice Department on Wednesday . “ Rather , the IRS habituate John Doe summonses to hold data about potential violations of internal gross constabulary by individuals whose identities are unknown . ”

Argentina’s President Javier Milei (left) and Robert F. Kennedy Jr., holding a chainsaw in a photo posted to Kennedy’s X account on May 27. 2025.

In a assertion , Coinbase vow to fight the summons , which the company ’s head counselling haspreviously characterizedas a “ very , very broad ” sportfishing outing .

“ We are aware of , and expected , the Court ’s ex parte order today , ” wrote a Coinbase spokespersonon Reddit . “ We look forward to oppose the DOJ ’s request in court after Coinbase is wait on with a subpoena . ”

In 2014 , the IRSreleased a noticeclarifying that practical currencies like Bitcoin are attribute and subject to revenue enhancement laws as such . Among other things , this means taxpayer are required to report profits made through sell them as nonexempt income .

William Duplessie