The crypto exchange’s lawyers argued that the IRS has gone beyond the boundaries set in a previous case concerning Coinbase.

Crypto exchange Kraken has called the Internal Revenue Service’s (IRS) investigation into its users an “unjustified treasure hunt.” 

ഒരു ബുധനാഴ്ച പ്രകാരം റിപ്പോർട്ട് നിന്ന് ബ്ലൂംബർഗ്, Kraken has asked a federal court in San Francisco to order the IRS to stand down. 

“Rather than abide by Coinbase’s ground rules, the IRS doubles down, making even more expansive requests and relying on a thinner rationale,” said Kraken in a കോടതി ഫയലിംഗ് ഏപ്രിൽ 24- ൽ.

Kraken’s request for the federal court’s intervention comes after the IRS submitted a petition to enforce a summons, seeking information on the crypto exchange’s users that transacted at least $20,000 in a financial year between 2016 and 2020. 

The IRS was granted permission to serve the summons in May 2021, which the agency said would be relevant to their investigation into cryptocurrency users who may be failing to comply with their tax obligations.

However, in February, the IRS petitioned the court to enforce the summons, claiming that Kraken had not complied with the summons and had not produced the books, records, papers and other data that the agency demanded. 

In the filing on Friday, Kraken argued that the IRS’ demands exceeded the boundaries set by U.S. District Judge Jacqueline Scott Corley in a similar case six years ago. Kraken’s lawyers claimed that in this instance, the IRS “wants more — and for a much bigger universe of users.” 

A hearing has been set for next month for the presiding judge to hear arguments on the case.

Earlier this year, Kraken പെയ്ഡ് a $30 million fine to the U.S. Securities and Exchange Commission (SEC) to settle a lawsuit regarding its cryptocurrency staking services. As a result of its compliance with the SEC’s order, Kraken അക്ക ed ണ്ട് for the most staked ETH withdrawn since the Shanghai Upgrade went live on the mainnet.

The largest withdrawer of #Etherum since the Shanghai upgrade has been Kraken (433k ETH), which had to to shut down it’s staking service due to settlement with the US SEC pic.twitter.com/w1rSlxNbDl

— Velvet.Capital (@Velvet_Capital) ഏപ്രിൽ 23, 2023