Cryptocurrency news

A Ledgerswap user sued the IRS for seizing data on cryptocurrency transactions

A Ledgerswap user sued the IRS for seizing data on cryptocurrency transactions

A user of the cryptocurrency exchange sued the us Tax service (IRS) for the removal of their personal data that could have been obtained during the prosecution of
Last summer, cryptocurrency trader Jim Harper received a letter from the IRS, which reported that the Agency has information about his cryptocurrency account, so IRS employees have reasons to suspect Harper of not paying taxes on profits received as a result of transactions with cryptocurrencies. More than 10,000 other users received similar notifications.

A us citizen claims that he has been paying taxes regularly since 2013, so he filed a lawsuit against the IRS in the District court of new Hampshire. The trader accuses the IRS and its 10 employees of violating privacy and confidential information.

At the same time, the IRS did not report where it received data on Harper’s cryptocurrency transactions. The plaintiff believes that the Agency could have obtained his confidential information in early 2018 from The exchange, which, under a court order, provided the IRS with data on 13,000 accounts. The information sent to the tax authorities contained the taxpayer’s name, individual number, place of birth, address of residence, information about the user’s transactions and issued orders.

The former exchange user said that if his guesses are correct, it is a violation of his rights, since Harper had no opportunity to challenge the withdrawal of his personal data. In this case, the plaintiff will seek to have the IRS delete data about his cryptocurrency account. Harper added that if he wins the case, other users who received the IRS notification will be able to do the same.

The prosecution of began back in 2016. The IRS suspected exchange users of using cryptocurrencies to avoid filing reports and paying taxes.