Kraken says it fought IRS to protect clients against identity theft, other potential harms

Kraken, a starring crypto exchange, commented connected the result of a caller lawsuit successful a connection emailed to CryptoSlate connected July 3.

A institution typical said:

“We fought the IRS due to the fact that they sought intrusive and unnecessary accusation astir U.S. clients… Were this accusation leaked by the IRS, it would exposure Kraken clients to individuality theft and different harm, which Kraken prevented.”

Kraken specifically said that the Internal Revenue Service (IRS)’s requests could person revealed users’ IP addresses and banking details — arsenic good arsenic users’ nett worth, employment data, and sources of wealth, as CryptoSlate reported connected July 1.

While Kraken was compelled to taxable identifying accusation connected users trading astatine definite thresholds during definite periods, the Court declined its petition that Kraken uncover different KYC/AML data, including employment information, nett worth, oregon root of wealth.

The typical said the speech appreciated that the Court rejected galore of the IRS’ requests for information. “much broader than what is necessary.”

The institution said that its principles see lawsuit information and privateness and asserted that Kraken “will ever basal up for its clients arsenic it did successfully here.”

Despite Kraken’s partial occurrence successful keeping idiosyncratic information private, the institution has nevertheless been ordered to supply definite accusation to the IRS. Kraken indispensable surrender immoderate identifying accusation related to users who traded astatine slightest $20,000 worthy of cryptocurrency implicit a one-year play betwixt Jan. 1, 2016, and Dec 31, 2020.

The institution indispensable besides supply definite on-chain data.

Kraken handled $382 cardinal of trading measurement implicit the past 24 hours, placing it among the 20 largest crypto exchanges by volume.

The station Kraken says it fought IRS to support clients against individuality theft, different imaginable harms appeared archetypal connected CryptoSlate.