Court allows mystery Coinbase customer to challenge IRS summons

A federal court has upbraided the U.S. Internal Revenue Service for seeking to get ahold of an unprecedented number of bitcoin customer records.

Last year, a California district court allowed the tax agency to require San Francisco-based digital currency exchange Coinbase to submit records of all transactions that took place from 2013 to 2015 as part of an investigation into possible tax fraud in the country. The bitcoin company, however, fought back in court, where it was joined by several anonymous customers.

Now, one of those customers has been allowed by the court to challenge the IRS summon.

In a 12-page ruling, U.S. Magistrate Judge Jacqueline Corley agreed to let the customer, identified as John Doe 4 in the documents, to intervene in the court proceeding on grounds that the customer “made a sufficient showing of an abuse of process to support intervention as of right.”