The same day Bitcoin cracked its all-time high above $11,000, the government dealt its first blow to the crypto world…
On Wednesday, a federal judge in San Francisco ordered the popular Bitcoin exchange, Coinbase, to provide the IRS with information on over 14,000 account holders.
The taxman noticed that only 800-900 people reported gains related to Bitcoin in each of the years between 2013-2015. It seemed unusual given Bitcoin’s meteoric rise.
So the IRS went for its pound of flesh.
Initially, the government wanted complete data on every Coinbase user that transacted between 2013 and 2015. The exchange’s website says it has 13 million users (more than the number of Schwab brokerage accounts).
But Coinbase pushed back… and the government agreed to only take limited data (including name, date of birth, address, tax ID number, transaction statements and account logs) for accounts that have bought, sold, sent or received at least $20,000 worth of Bitcoin in a given year.
Don’t say I didn’t warn you about Coinbase. I told Sovereign Man: Confidentialreaders last month:
If you’re tempted to purchase Bitcoin from the popular Coinbase exchange, don’t bother.
They’ve sold out to regulators.
The IRS is calling this a “partial win.”
But you can be sure, there will be a public beheading. This is something governments almost always do.
They’ll find a prominent Bitcoin person, someone that’s polarizing to the public – like “pharma bro” Martin Shkreli.
It will be a very public trial… and they’ll throw his ass in the slammer.