{"id":43520,"date":"2025-05-31T14:00:00","date_gmt":"2025-05-31T11:00:00","guid":{"rendered":"https:\/\/coinengineer.net\/blog\/?p=43520"},"modified":"2025-05-31T13:03:32","modified_gmt":"2025-05-31T10:03:32","slug":"us-government-opposes-coinbase-users-request-to-block-access-to-crypto-records","status":"publish","type":"post","link":"https:\/\/coinengineer.net\/blog\/us-government-opposes-coinbase-users-request-to-block-access-to-crypto-records\/","title":{"rendered":"US Government Opposes Coinbase User\u2019s Request to Block Access to Crypto Records"},"content":{"rendered":"<p data-start=\"85\" data-end=\"313\">The <a href=\"https:\/\/coinengineer.net\/blog\/secs-staking-guidance-signals-clear-win-for-crypto-industry\/\"><strong data-start=\"89\" data-end=\"117\">United States government<\/strong><\/a> has argued that the Supreme Court should reject a case brought by a <a href=\"https:\/\/coinengineer.net\/blog\/coinbase-2025-data-breach-class-action-lawsuit\/\"><strong>Coinbase<\/strong> <\/a>user who attempted to block the transfer of his cryptocurrency transaction data to the Internal Revenue Service (IRS).<\/p>\n<p data-start=\"315\" data-end=\"689\">In a document dated May 30, U.S. Solicitor General D. John Sauer stated that James Harper, a Coinbase user, does not have a constitutional right to hide his <strong data-start=\"472\" data-end=\"502\">crypto transaction records<\/strong>. The government noted that Harper had \u201cvoluntarily\u201d shared his information with Coinbase and that the IRS followed a legal process by obtaining the data through a court-approved summons.<\/p>\n<p data-start=\"691\" data-end=\"1035\">Harper\u2019s case is tied to an IRS investigation launched in 2016. At that time, the agency observed that millions of users were conducting <strong data-start=\"828\" data-end=\"852\"><a href=\"https:\/\/coinengineer.net\/blog\/crypto-market-crash-trump-rate-hike-fears-may-2025\/\">Bitcoin<\/a> transactions<\/strong> through Coinbase, while only a small number were reporting those gains on their tax returns. As a result, the IRS issued a \u201cJohn Doe\u201d summons to access the data of high-volume users.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_71 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/coinengineer.net\/blog\/us-government-opposes-coinbase-users-request-to-block-access-to-crypto-records\/#Coinbase_User_Filed_a_Lawsuit_Against_the_IRS\" title=\"Coinbase User Filed a Lawsuit Against the IRS\">Coinbase User Filed a Lawsuit Against the IRS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/coinengineer.net\/blog\/us-government-opposes-coinbase-users-request-to-block-access-to-crypto-records\/#Coinbase_Hit_by_Data_Breach\" title=\"Coinbase Hit by Data Breach\">Coinbase Hit by Data Breach<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-start=\"1037\" data-end=\"1086\"><span class=\"ez-toc-section\" id=\"Coinbase_User_Filed_a_Lawsuit_Against_the_IRS\"><\/span>Coinbase User Filed a Lawsuit Against the IRS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"1088\" data-end=\"1439\">Harper claimed he traded Bitcoin via Coinbase during the relevant years and argued that the IRS&#8217;s data collection constituted an unconstitutional search of his personal information. However, lower courts ruled that the records in question were business documents of Coinbase, not Harper\u2019s private data, and confirmed that the IRS acted within the law.<\/p>\n<p data-start=\"1441\" data-end=\"1872\">In its submission to the Supreme Court, the government referenced prior cases to support its stance. Specifically, it cited the United States v. Miller decision, stating that individuals do not have a reasonable expectation of privacy regarding financial information held by third parties. Additionally, it pointed to Coinbase\u2019s privacy policy, which clearly warns users that data may be shared with legal authorities if necessary.<\/p>\n<p data-start=\"1874\" data-end=\"2011\">The document stated, \u201cThe appeals court rightly rejected these arguments as inconsistent with Supreme Court precedent and lacking merit.\u201d<\/p>\n<p data-start=\"2013\" data-end=\"2177\">The Supreme Court has not yet decided whether it will hear the case. If the request is denied, the ruling by the First Circuit Court in favor of the IRS will stand.<\/p>\n<h2 data-start=\"2179\" data-end=\"2210\"><span class=\"ez-toc-section\" id=\"Coinbase_Hit_by_Data_Breach\"><\/span>Coinbase Hit by Data Breach<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-start=\"2212\" data-end=\"2578\">On May 15, Coinbase revealed that some customer support staff in India were bribed to leak user data. The breach exposed sensitive details, including <strong data-start=\"2362\" data-end=\"2380\">customer names<\/strong>, account balances, and transaction histories. The company reported that approximately 1% of its monthly active users were affected. Among them was Roelof Botha, managing partner at Sequoia Capital.<\/p>\n<p data-start=\"2580\" data-end=\"2796\" data-is-last-node=\"\" data-is-only-node=\"\">Following the breach, multiple lawsuits were filed against Coinbase. At least six separate complaints were submitted on May 15 and 16, accusing the exchange of inadequate security measures and poor incident response.<\/p>\n<hr \/>\n<p data-start=\"2580\" data-end=\"2796\" data-is-last-node=\"\" data-is-only-node=\"\"><em>You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don\u2019t forget to follow us on our\u00a0<a href=\"https:\/\/t.me\/coinengineernews\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Telegram,\u00a0<\/strong><\/a><a href=\"https:\/\/www.youtube.com\/@CoinEngineer\" target=\"_blank\" rel=\"nofollow noopener\"><strong>YouTube<\/strong><\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/coinengineers\" target=\"_blank\" rel=\"nofollow noopener\"><strong>Twitter<\/strong><\/a>\u00a0channels for the latest\u00a0<a title=\"News\" href=\"https:\/\/coinengineer.net\/blog\/news\/\" data-internallinksmanager029f6b8e52c=\"7\">news<\/a>\u00a0and updates.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States government has argued that the Supreme Court should reject a case brought by a Coinbase user who attempted to block the transfer of his cryptocurrency transaction data to the Internal Revenue Service (IRS). In a document dated May 30, U.S. Solicitor General D. John Sauer stated that James Harper, a Coinbase user,<\/p>\n","protected":false},"author":29,"featured_media":37281,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,2],"tags":[4270,151,16963,6652],"class_list":["post-43520","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-news","tag-case","tag-coinbase","tag-crypto-records","tag-irs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>US Government Opposes Coinbase User\u2019s Request to Block Access to Crypto Records - Coin Engineer<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/coinengineer.net\/blog\/us-government-opposes-coinbase-users-request-to-block-access-to-crypto-records\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"US Government Opposes Coinbase User\u2019s Request to Block Access to Crypto Records - Coin Engineer\" \/>\n<meta property=\"og:description\" content=\"The United States government has argued that the Supreme Court should reject a case brought by a Coinbase user who attempted to block the transfer of his cryptocurrency transaction data to the Internal Revenue Service (IRS). 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