After receiving a court order in June, Kraken will share selected user information with the Internal Revenue Service (IRS) in the following month.
“Kraken expects to share this information covered by the court order in early November 2023,” the exchange wrote in an email sent to affected U.S. users on Thursday. Kraken did not immediately respond to a request for comment.
According to the June court order, Kraken is required to provide personal information and transaction history for any customer who traded more than $20,000 in any year from 2016 to 2020. This includes names, birthdates, taxpayer identification numbers, addresses, phone numbers, email addresses, and five years of transaction history.
The IRS was seeking broader information, including users' IP addresses, employment details, sources of income, net assets, and banking information. However, Kraken stated in the email that it had successfully persuaded the court to “significantly reduce” the number of affected customers and the amount of customer data that needs to be provided.
The June court order revealed that the number of affected users seems to have decreased to 42,017 individuals, down from the initially sought information of 59,331 Kraken users by the IRS.