The American cryptocurrency exchange Kraken has filed a lawsuit with a request to invalidate the request of the US Internal Revenue Service (IRS) to provide information about users of the exchange. This publication reported Bloomberg. A hearing in the case is due in May.
The exchange reportedly called the IRS demands a “treasure hunt.”
In February of this year, the IRS went to court, demanding the provision of customer data from the exchange. The tax authorities were interested in comrades with a trading volume of more than $20,000 in 12 months from 2016 to 2020.
Thus, the department planned to get a complete base of American taxpayers and fight those who evade taxes. Interestingly, this lawsuit comes just days after the US Securities and Exchange Commission (SEC) forced Kraken to end its staking program and fined the platform $30 million.
The company neither acknowledged nor denied the regulator’s accusations. But she agreed to close the staking program and pay a fine. For customers outside the United States, the service continued its work without changes.
Kraken lawyers believe that the IRS has gone beyond what is permitted, and its claims are not supported by anything. The trading platform referred to the statement of the Coinbase crypto exchange from 2017. In the case of Coinbase, the IRS backed down, requiring the data of only a few thousand customers. Kraken hopes to scam its users and keep their transactions private.
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