Coinbase must turn over information about thousands of its users to the Internal Revenue Service (IRS), a US district court ruled on Wednesday.
As one of the leading exchanges for cryptocurrencies like bitcoin and ether, Coinbase has seen billions of dollars exchanged on its platform— some of which the IRS believes is not being accurately reported by taxpayers.
The court order requires Coinbase to hand over info on all customers who made a transaction worth $20,000 or more between 2013 and 2015. Coinbase has estimated that this request would total 8.9 million transactions between 14,355 different account holders, according to the court order.
Among the information requested are the names, birth dates, addresses, tax IDs, transaction logs and account invoices of the Coinbase users.
That sounds like a lot of information but it’s actually a major narrowing from the IRS’s initial summons in November 2016, which sought information about every single transaction on the exchange during the period. Coinbase argued that this was an invasion of its customers’ privacy. The company initially ignored the request, before the IRS filed a petition to enforce the summons in March of this year…