The US Government Urges Supreme Court to Reject Coinbase User Lawsuit Over IRS Access to Crypto Records

Blockbeats
05-31

BlockBeats News, May 31, according to Cointelegraph's report, the U.S. government yesterday filed a document with the Supreme Court asking to reject Coinbase user James Harper's appeal to the IRS (Internal Revenue Service) to obtain his cryptocurrency transaction records. Attorney General D. John Sauer stated that under the Fourth Amendment, Harper does not have a privacy protection right for the financial records stored on Coinbase because this data was voluntarily shared with the exchange platform, and the IRS obtained it through a legal judicial process.

The case originated from the IRS's cryptocurrency tax investigation in 2016, when the agency found that many Coinbase users did not report their cryptocurrency gains, and then obtained a "John Doe" summons requesting the exchange platform to submit records of high-volume users. Harper filed a lawsuit claiming it constituted an unconstitutional search, but lower courts ruled that Coinbase's records were business documents rather than personal private documents, and the IRS's actions were legal. The Supreme Court has not yet decided whether to hear the case. If the appeal is denied, it will uphold the First Circuit Court of Appeals' support for the IRS's ruling.

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