Kraken Ordered by Court to Provide IRS with Account Information: What You Need to Know
A federal court has ruled that cryptocurrency exchange Kraken must provide the Internal Revenue Service (IRS) with account and transaction information. This ruling has significant implications for Kraken users and the broader cryptocurrency community.
What Happened? In May 2025, Kraken received a summons from the Internal Revenue Service (IRS) demanding that we produce a wide range of records and data relating to our U.S. clients. The IRS sought information about U.S. taxpayers who conducted cryptocurrency transactions. This led to a legal battle, culminating in the recent court order.
The Court Order Explained: A federal court ordered crypto exchange Kraken to turn over account and transaction information to the IRS pursuant to a “John Doe” summons. The IRS said it needed that information to see if any of the U.S. taxpayers were failing to comply with tax laws. A federal court has ordered Kraken exchange to provide account information to the IRS pursuant to a “John Doe” summons.
Who is Affected? The court order requires Kraken to hand over information on its users who conducted transactions of at least $20,000 in cryptocurrency between 20 [Note: date missing from snippet - this would be important to research and insert]. This information includes user identification details and transaction history.
The IRS's Perspective: The IRS believes that access to this data is crucial for ensuring tax compliance within the cryptocurrency space. The IRS hopes to identify individuals who may be underreporting their crypto gains or engaging in other forms of tax evasion. The IRS…
Kraken's Response: Kraken… [Further information on Kraken's response and any statements issued should be included here, based on factual information].
What This Means For You: If you are a Kraken user who conducted cryptocurrency transactions exceeding $20,000 during the relevant period, your account information may be shared with the IRS. It is advisable to consult with a tax professional to ensure you are compliant with all applicable tax laws.