American Banker reports on a potential privacy threat to users of digital currency exchange platform Coinbase:
Under a procedure called a John Doe summons, the IRS this month asked a federal court in California to approve its request for Coinbase to turn over records on any user who had made digital currency transactions between 2013 and 2015.
At issue is the indiscriminate nature of the request. Coinbase has accumulated nearly 5 million users, according to its website – which could mean the company might be forced to turn over financial records on millions of U.S. taxpayers.
In the past, the IRS had targeted a number of banks with John Doe summonses. The requests were broad, but did not ask financial institutions to turn over information on every single one of their accountholders as the IRS is now demanding Coinbase do, industry lawyers said.
(Score: 0, Disagree) by Anonymous Coward on Wednesday November 30 2016, @11:05AM
The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.