Cryptocurrency exchange Kraken has been ordered by the United States District Court for the Northern District of California to disclose all account and transaction information to the Internal Revenue Service (IRS) to determine tax compliance.

The order states that Kraken should provide the details of users who engaged in transactions which exceeded the $20,000 mark within one calendar year. The details include user names, birthdates, addresses, phone numbers, emails, ID numbers and other personal information.

In February of 2023, the IRS filed a court petition in the Northern District of California shortly after Kraken reached a settlement with the U.S. Security Exchange Commission (SEC) over claims surrounding security law violations connected to Kraken’s staking service.

In response to that, the IRS claimed that it has issued a summons to Kraken back in 2021, which the troubled cryptocurrency failed to comply with. The IRS is seeking to look into the tax obligations of all users on the exchange which conducted transactions between 2016 and 2020.

Sources:

https://cointelegraph.com/news/kraken-ordered-by-court-disclose-user-data-irs-tax-compliance

https://www.bloomberg.com/news/articles/2023-06-30/kraken-ordered-to-turn-over-its-users-information-to-the-irs

https://storage.courtlistener.com/recap/gov.uscourts.cand.407965/gov.uscourts.cand.407965.34.0.pdf