## Coinbase Challenges IRS Data Request in Privacy Lawsuit Coinbase has initiated a privacy lawsuit challenging the IRS's 2017 request for extensive customer transaction records. The cryptocurrency exchange argues that the IRS's demand constitutes an "excessive" and unreasonable invasion of privacy, potentially compromising the anonymity of its users and making blockchain activity vulnerable to surveillance. The lawsuit highlights concerns about the IRS's demand that individuals disclose transaction records when using third-party services like Coinbase. Coinbase contends that providing information such as public keys and wallet addresses would effectively eliminate user anonymity. This legal battle underscores the ongoing tension between government oversight and individual privacy rights in the digital age. It echoes a similar lawsuit filed in 2020 by Coinbase user James Harper, who claimed the IRS's data collection violated the Fourth Amendment. The outcome of this case could significantly impact the privacy landscape for cryptocurrency users. ```
