TechFlow reported that according to Fortune, the US cryptocurrency exchange Kraken may hand over the transaction information of traders with a transaction volume of $20,000 or more to the US Internal Revenue Service (IRS). Previously, the IRS had asked Kraken to provide user information, but the exchange refused to cooperate, leading the IRS to ask a federal judge in February this year to execute a subpoena issued to its holding company Payward Ventures Inc. After months of debate, the judge supported the IRS's position last Friday and ruled that the subpoena should be executed.
The judge said: "The IRS is conducting an investigation to determine whether United States taxpayers who use cryptocurrency comply with internal tax laws. In furtherance of that investigation, this court authorizes the issuance of a subpoena to Payward Ventures." Kraken opposed the IRS's subpoena and called its investigation a "vexatious treasure hunt."
According to the judge's ruling, Kraken is now obliged to provide records of approximately 160 million transactions and provide information about 59,351 accounts. Although Kraken's lawyers believe this is an unnecessary burden, the judge pointed out that "a subpoena requesting relevant records will not be denied even if the subpoena request produces (or searches for) a large number of records or causes the payer to spend a lot of time and money."