Elon Musk's X Calls on Supreme Court to Prevent IRS Access to Coinbase User Information

Elon Musk's social media company X Corp. has petitioned the U.S. Supreme Court to prevent the IRS from gaining access to Coinbase users' financial information without a warrant.

In an amicus curiae brief filed Friday, X contended that the IRS improperly employed a subpoena to seize three years of transaction history from Coinbase, affecting more than 14,000 users, including petitioner James Harper.

X Challenges IRS "Suspicionless" Subpoenas

X, joined by seven advocacy groups and researchers, is challenging the IRS's power to issue sweeping subpoenas without individualized suspicion.

The firm says the IRS illegally obtained Harper's Fourth Amendment protections by obtaining Coinbase user records under a blanket, suspicionless subpoena.

"The IRS secured a gigantic amount of Coinbase records by virtue of a suspicionless dragnet subpoena," the filing said.

Supreme Court Seeks Federal Government's Answer

On Monday, the Supreme Court asked for the federal government's response to the case, a significant breakthrough in the lawsuit.

This court case goes back to 2020, when James Harper sued the IRS for purportedly seizing his crypto transaction data without legal authority. But in 2023, a federal court held that the IRS was within its right to access Coinbase user data.

Privacy Concerns in Crypto Regulation

This case highlights the constant debate over privacy vs. regulation in crypto. With Elon Musk's X Corp. now getting involved, the matter of protection of user data might become the central theme of the Supreme Court's future verdicts.

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