Coinbase (coin) filed a short on The case of the US Supreme Court Incorporating an internal revenue service request for data with hundreds of thousands of its customers in 2016, focusing on the court should “protect American privacy interests in digital information stored by third-party service providers.”
The US tax agency – in an action during President Donald Trump’s first administration – is looking for financial records under the stance that the transaction records of individuals should be used once they share their information with a third party. This time, that party was Coinbase. The exchange fought to narrow the request through court battles and eventually forced to deliver a narrower data range.
“The court must intervene to clarify that the third-party doctrine does not allow the IRS to conduct dragnet searches,” Coinbase argued with the Amicus briefs filed Wednesday in the case with extensive privacy implications.
In 2020, one of the customers, James Harper, a Bitcoin (BTC) researcher, Filed a lawsuit Against the IRS, it is accused of improper overreach for its demand for records. Years later, Harper – a lawyers and both And the American Enterprise Institute – has its argument in front of the high court.
“The user’s anonymous person is lost – and the blockchain becomes susceptible to easy monitoring – when the government gets the information that gives up to match a public key or wallet address to a user’s identity,” Coinbase said.
“This John Doe Summons attacked a sphere where more than 14,000 Americans have reasonable privacy hopes against an unarmed IRS trawl for extensive personal and financial information,” the company argued.
Representing the case of government, the Department of Justice is Earlier argued that “a person does not have a reasonable privacy reliance on information voluntarily given to a third party, including bank notes that belong to him.”
Read more: How a lawsuit against IRS is trying to expand privacy for crypto users
