The U.S. government has asked the Supreme Court to dismiss Coinbase user James Harper's case, which seeks to block the IRS from accessing his cryptocurrency transaction records, citing a violation of privacy under the Fourth Amendment.
The IRS legally obtained the data through a “John Doe” subpoena in a 2016 investigation that found many Coinbase users were not reporting their cryptocurrency earnings, while Coinbase warned in its policy that it could share information with authorities.
The lower courts ruled in favor of the IRS, finding that the records belong to Coinbase and are not private to the user, relying on legal precedent indicating that there is no reasonable expectation of privacy in data handed over to third parties.
Coinbase has intervened in the case, defending its users' privacy and warning of the danger of setting a precedent that would allow warrantless mass surveillance, noting that the "third-party" doctrine used to justify the IRS request is dangerous in the digital and blockchain age.
Additionally, in May 2025, Coinbase suffered an internal attack that compromised user data, which has led to lawsuits and questions about information security on cryptocurrency platforms. Additional background information.
The Supreme Court has not yet decided whether to take up the case, which could set a key precedent for digital privacy and tax oversight in the United States.
Summary with emojis:
🇺🇸📜 US government asks Supreme Court to reject Coinbase user lawsuit
🔐🛡️ Case revolves around privacy and IRS access to crypto records
⚖️📊 Courts back IRS: Coinbase data is not private
🚨🔍 Coinbase warns of mass surveillance without a warrant
💥👨💻 Insider attack on Coinbase exposes data and sparks lawsuits
⚖️⏳ The Supreme Court will decide whether to accept the case, which is key to digital privacy.
