Coinbase User (Also, Class Action Lawyer) Files To Intervene In Case Where IRS Wants Info On All Coinbase Users

from the overreach dept

We’ve written a bit about how the IRS is trying to force Coinbase to hand over information on all its users, because it’s discovered some evidence of at least one person using Bitcoin, via Coinbase, as a tax dodge. While the demand seems massively overbroad, so far the judge has allowed it to move forward. Coinbase has indicated that it will fight back on behalf of users, but nothing definitive has been done yet — which has some Coinbase users feeling uncomfortable. At least one has now filed to intervene in the case, in order to seek to quash the summons.

Now, where this gets slightly more interesting is the fact that the individual filing, Jeffrey K. Berns, is a managing partner of a class action law firm that has his name on the masthead. The firm does seem to be focusing on building up a reputation in the cryptocurrency world, with a blog dedicated to the topic and much of the firm’s recent press relating to issues on cryptocurrencies. So it appears that some of the decision to intervene here may be a bit of brand building, as the firm seems to want to be the go-to player for legal issues dealing with cryptocurrencies. At the very least, that may raise some questions about the motivations behind the filing here — but it does seem like some objections should be raised to allowing a grand fishing expedition by the IRS.

Filed Under: , , , ,
Companies: coinbase

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Coinbase User (Also, Class Action Lawyer) Files To Intervene In Case Where IRS Wants Info On All Coinbase Users”

Subscribe: RSS Leave a comment
Ninja (profile) says:

Bitcoins are a very good way to move money around without many control mechanisms the Governments have around so I suspect it is already being used by the powerful to move around illegal/criminal money around. This could actually help the currencies out there keeping the Govt away. It will be interesting to see how this will develop and if this guy is just lending his face to these power figures.

Quiet Lurcker says:

Re: Re:

…suspect it is already being used…to move around illegal/criminal money around.

That could be true. But, do you want to have the government get access to the birth certificate you have stored in your bank safe deposit box because someone who rents one on the other side of the vault MIGHT be storing marijuana in it? I know I don’t. And before you try to tell me it can’t happen in this case, take a hard look at all the wrangling going on around megaupload.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...