Kraken says it fought IRS to protect clients against identity theft, other potential harms
Jul. 3, 2023
By Mike Dalton
The exchange has been compelled to provide identifying information on certain clients but the court conceded that they tax agency overreached in some requests.
Kraken, a leading crypto exchange, commented on the outcome of a recent case in a statement emailed to CryptoSlate on July 3.
A company representative said:
“We fought the IRS because they sought intrusive and unnecessary information about U.S. clients… Were this information leaked by the IRS, it would expose Kraken clients to identity theft and other harm, which Kraken prevented.”
Kraken specifically said that the Internal Revenue Service (IRS)’s requests could have revealed users’ IP addresses and banking details — as well as users’ net worth, employment data, and sources of wealth, as CryptoSlate reported on July 1.
While Kraken was compelled to submit identifying information on users trading at certain thresholds during certain periods, the Court declined its request that Kraken reveal other KYC/AML data, including employment information, net worth, or source of wealth.
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