A federal court ruled that the IRS has the legal authority to access Coinbase users’ trading data via a “John Doe” summons, and doing so is not a violation of constitutional rights, according to court filings.
The ruling was made in a case filed by James Harper against the IRS in 2020. The suit sought to block the tax authority’s access by arguing that it was a violation of Harper’s Fourth and Fifth Amendment rights.
However, the U.S. District Court of New Hampshire said the powers afforded to the IRS by Congress allow it to access any information knowingly shared with a third party, and the tax authority had satisfied all constitutional requirements before issuing the summons.
Thus, Harper is not entitled to any protections as he did not have “a reasonable expectation of privacy in Coinbase’s records of his account.”
The court further stated that the trading records at Coinbase are akin to financial records at a bank and cannot be protected under constitutional rights.
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