America’s Internal Revenue Service has gone fishing. Its target? Every single Coinbase user who ever placed a $20,000 trade. The huge dragnet exercise, spanning 2013-2015 and incorporating over 14,000 users, was awarded by a court yesterday, November 29. This is despite the best efforts of America’s largest bitcoin broker, which has fought back against what it sees as a shameless data grab and privacy violation. In a bid to save face, Coinbase has claimed a “partial victory” in its running battle with the IRS.
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Deep Sea Fishing on a Taxpayer Mission
There’s no such thing as a quiet day in bitcoin. The last 24 hours has witnessed record-breaking trading volume, widespread exchange outages, all-time-highs, the largest red candle ever witnessed on a BTC chart and the fastest recovery in dollar terms ever seen. Much of that drama circled around Coinbase, a broker which dominates the bitcoin market, both in the U.S. and abroad.
Whilst dealing with unprecedented demand, with traffic levels hitting 8x their peak from June, the platform – whose iOS app has surged into the top ten, passing Netflix and Spotify – has had its hands full fighting an ongoing dispute with the IRS. Coinbase has been pushing back against what it believes to be an unjustified investigation into the actions of hundreds of thousands of its users.
A Pyrrhic Victory for Coinbase
In a blogpost filed November 29, Coinbase claimed a “partial victory” over the IRS, though many commenters would be less charitable, and award the latest round to the taxman. Coinbase was nevertheless keen Read More Here