Supreme Court Rejects Coinbase Data Case
Supreme Court Rejects Coinbase User Data Case
The US Supreme Court declined to review a case involving James Harper, a Coinbase user who alleged the IRS violated his Fourth Amendment rights by obtaining his data through a John Doe summons. This decision upholds lower court rulings against Harper and establishes a significant precedent for cryptocurrency privacy in the US.
The Case: Harper sued the IRS in 2020, claiming the agency's acquisition of his data from Coinbase constituted an unlawful search and seizure. The District Court and First Circuit Court of Appeals both dismissed the case.
The Implications: The Supreme Court's inaction allows the lower court rulings to stand, potentially setting a dangerous precedent. Coinbase, which filed an amicus brief supporting Harper, warned that this could allow the government to track all past and future crypto transactions. Coinbase Chief Legal Officer Paul Grewal stated, "This applies to banks, phone companies, ISPs, email—you should have the same right to privacy for your inbox or account as you have for a letter in your mailbox."
Increased IRS Scrutiny of Crypto Users
Crypto tax software company CoinLedger reported a 758% increase in support requests related to IRS warning letters, suggesting heightened scrutiny of crypto transactions. While not directly indicating wrongdoing, many of these letters stem from information obtained via John Doe summonses to exchanges like Coinbase and Poloniex.
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