Kraken Loses Bid to Block IRS Tax Probe of Crypto Gains (1)

Cryptocurrency exchange Kraken was ordered by a judge to provide a wide swath of information about its users to the Internal Revenue Service for the agency’s investigation of underreported tax liability.

The IRS has said it wants information on Kraken accounts that did at least $20,000 of cryptocurrency trading in any single year, from 2016 to 2020. Kraken had called the agency’s summons an “unjustified treasure hunt,” arguing it went well beyond the boundaries set in a similar fight with Coinbase about six years ago.

Friday’s ruling siding with the government comes amid a deepening US crackdown on cryptocurrency. The ...