The court ordered Kraken to turn over the personal information of certain users to the Internal Revenue Service (IRS).
According to the court order, Kraken must submit details of clients whose annual traded value surpassed $20,000 between 2016 and 2020. The personal details requested by the IRS include user names, addresses, birth dates, and taxpayer identification numbers, among other documents. Moreover, Kraken must disclose blockchain addresses, transaction hashes, and raw blockchain data to the agency. Â
The court document revealed that the IRS sought Kraken’s user records since March 2021, when the agency issued an administrative summons to the exchange. The IRS alleged that Kraken failed to comply with the court summons. The filing added,
“Despite discussions between the parties, however, Kraken refused to comply with the summons and has not produced the books, records, papers, and other data demanded in the summons.”
Consequently, the officials filed the current case against Kraken in February 2023 to enforce the demands of the 2021 court summons.
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It is worth noting that the court rejected the IRS’ demands to receive clients’ employment details and other KYC information from Kraken. Citing that the information requested by the IRS was “overly broad,” the court also refused to force the exchange to share the reports generated by its AML system.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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