Crypto
Lawsuit Challenging IRS Seizure Of Crypto Account Records Is Back In Court
On this picture illustration, the Coinbase cryptocurrency alternate brand (C) is seen on the display screen of … [+]
A New Hampshire man has fired again on the IRS over the company’s issuance of a “John Doe” summons. James Harper not too long ago filed a response to the IRS’ movement to dismiss his lawsuit, which alleged a violation of his constitutional rights in a struggle over entry to his cryptocurrency data.
Background
In November 2016, the IRS made a proper request to serve a John Doe summons on all US Coinbase
COIN
The IRS wasn’t certain whether or not any specific Coinbase clients had didn’t correctly report earnings however assumed, based mostly on excessive charges of cryptocurrency trades, that many taxpayers had didn’t report taxable cryptocurrency transactions.
The IRS’ request was granted by Choose Jacqueline Scott Corley, who discovered that “[b]ased upon a assessment of the Petition and supporting paperwork, the Court docket has decided that the ‘John Doe’ summons to Coinbase, Inc. pertains to the investigation of an ascertainable group or class of individuals, that there’s a cheap foundation for believing that such group or class of individuals has failed or might have didn’t adjust to any provision of any inside income legal guidelines and that the data sought to be obtained from the examination of the data or testimony (and the identities of the individuals with respect to whose legal responsibility the summons is issued) are usually not available from different sources.” In consequence, Coinbase turned over a number of paperwork that included buyer identification info, data of account exercise, and periodic statements of account.
Coinbase subsequently posted on its web site that “On Feb. 23, 2018, Coinbase notified a bunch of roughly 13,000 clients regarding a summons from the IRS concerning their Coinbase accounts.” The discover directed readers to the Order.
Greater than a 12 months later, in keeping with courtroom paperwork, the IRS despatched a threatening kind letter to Harper stating, “We’ve info that you’ve or had a number of accounts containing digital forex however might not have correctly reported your transactions involving digital forex.”
Harper assumed that the IRS should have obtained his monetary data from no less than one of many three cryptocurrency exchanges with which he has carried out enterprise: Coinbase, Abra, and Uphold. The IRS’s movement to dismiss confirmed that it obtained Harper’s monetary data from Coinbase.
Nevertheless, Harper alleges that “the menace was apparently an empty one” since he obtained no follow-up correspondence over the following 3-1/2 years. That is as a result of, he asserts, his 2013-2015 earnings tax returns appropriately reported his cryptocurrency transactions.
Unique Lawsuit
Harper filed go well with in July 2020, alleging that the IRS gained entry to his non-public monetary data in violation of his rights. In March 2021, Choose Joseph DiClerico granted the IRS’s movement to dismiss. The First Circuit reversed that ruling in 2022 and returned the case to the US District Court docket in New Hampshire.
New Spherical Of Pleadings
On Jan. 10, 2023, the IRS filed a movement searching for once more the dismissal of all claims, this time for failure to state a declare. In response, Harper once more claimed that he was the sufferer of IRS overreach associated to the third-party summons in violation of his rights.
In his response, Harper notes that the US Supreme Court docket has held that the fitting of privateness is “a legit one” that deserves constitutional safety. And, he says that courts have acknowledged that curiosity consists of “info inside a person’s cheap expectations of privateness—together with monetary info.” That proper, he claims, would not go away just because Coinbase saved these data for him. The Fourth Modification safety to digital knowledge saved at an organization nonetheless exists, Harper claims, if “clients have substantial authorized curiosity on this info, together with no less than some proper to incorporate, exclude, and management its use.”
The IRS argues that they may not have provided a chance for Harper to be heard earlier than accessing the data. That is the entire level of a John Doe summons, they argue—the identities of the events are unknown.
However, Harper claims that the IRS might have issued a John Doe summons to Coinbase for the names and get in touch with info of Coinbase’s clients. Then, he says, the IRS might have examined his tax returns and determined whether or not it wanted entry to Harper’s monetary data via a summons.
Harper additionally argues that the summons has put him and his household at risk since “[h]olders of cryptocurrency are uniquely at risk of violent crime ought to third events turn out to be conscious of their holdings and buying and selling actions.” In line with his pleading, “[m]any homeowners of cryptocurrency keep their property on dwelling computer systems or units and thus should be on guard in opposition to prison assaults on their households, akin to dwelling invasion and kidnapping. Such assaults are disturbingly frequent.” Because the IRS nonetheless has possession of his data, he argues that will increase the danger that these data can be accessed by hackers, inviting assaults by criminals who might consider he holds important crypto property.
Lastly, Harper argues that taking his data is a “seizure” and the IRS’s subsequent assessment is a “search.” The seizure and search, he says, had been unreasonable with no probable-cause warrant and the IRS has cited no particular exception to the warrant requirement.
Subsequent Steps
Harper is asking the courtroom to disclaim the IRS’s Movement to Dismiss and permit his go well with to proceed in order that he can “deal with the company’s alarming information-gathering practices.” In different phrases, at this stage, it’s all about course of. The courtroom has not been requested to find out whether or not the summons was correct, however slightly whether or not Harper can proceed together with his lawsuit.
Within the meantime, the IRS continues to hunt out John Doe summons. On Aug. 15, 2022, a California federal courtroom approved the IRS to serve a John Doe summons on SFOX, searching for details about US taxpayers who carried out no less than $20,000 in crypto transactions between 2016 and 2021 with or via SFOX. One other set of John Doe summons had been approved on Sept. 22, 2022, requiring M.Y. Safra Financial institution to provide comparable info focusing on clients who may need used banking companies that M.Y. Safra Financial institution provided to SFOX clients. As a part of its argument, the IRS famous that investigations have recognized no less than ten US taxpayers who used SFOX’s companies for cryptocurrency transactions however didn’t report these transactions to the IRS.
Harper is represented by the New Civil Liberties Alliance in Harper v. Rettig, No. 20-cv-771-JD (D.N.H 2022). You’ll find out extra concerning the lawsuit right here.
Crypto
Blockchain Revolution: How Cryptocurrency is Transforming Global Logistics – theafricalogistics.com
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The global logistics industry is undergoing a seismic shift, driven by the integration of blockchain technology and cryptocurrency.
These innovations promise to enhance transparency, efficiency, and security across the supply chain. From tracking shipments to streamlining cross-border payments, the synergy between blockchain and cryptocurrency is setting new benchmarks for the logistics sector.
1. Blockchain’s Role in Logistics
Blockchain technology, essentially a decentralized ledger system, enables secure and transparent recording of transactions. For logistics, this translates into the ability to track goods in real-time, authenticate the origin of products, and mitigate fraud. Key benefits include:
- Enhanced Traceability: Every transaction, from the manufacturing stage to delivery, is recorded on an immutable ledger. This ensures that stakeholders have a comprehensive view of the supply chain.
- Reduced Paperwork: By digitizing documents such as bills of lading and certificates of origin, blockchain eliminates the inefficiencies of manual processes.
- Improved Trust: Smart contracts, self-executing agreements coded on the blockchain, reduce disputes and enhance trust between parties.
2. Cryptocurrency in Cross-Border Transactions
Traditional cross-border payments in logistics are often marred by high fees, long processing times, and currency exchange risks. Cryptocurrencies, like Bitcoin and stablecoins, are addressing these challenges by:
- Lowering Transaction Costs: Cryptocurrency transactions bypass intermediaries, significantly reducing fees.
- Speeding Up Payments: Transactions settle in minutes, eliminating delays common with traditional banking systems.
- Enhancing Financial Inclusion: For businesses in emerging markets, cryptocurrencies provide access to global trade without reliance on conventional banking infrastructure.
3. Use Cases Transforming the Sector
Several real-world applications highlight the impact of blockchain and cryptocurrency in logistics:
- Walmart’s Blockchain Initiative: Walmart leverages blockchain to track the origin of produce, ensuring food safety and traceability within its supply chain.
- Maersk’s TradeLens Platform: Developed in collaboration with IBM, TradeLens uses blockchain to digitize and streamline global shipping documentation, reducing inefficiencies.
- Cryptocurrency-Powered Freight Payments: Startups like Slync.io enable shippers to pay carriers using digital currencies, enhancing payment speed and reliability.
4. Challenges to Adoption
Despite its potential, the adoption of blockchain and cryptocurrency in logistics is not without hurdles:
- Regulatory Ambiguities: The legal status of cryptocurrencies varies across countries, complicating implementation.
- Scalability Concerns: Processing thousands of transactions per second remains a challenge for blockchain networks.
- Skill Gaps: The logistics workforce often lacks the technical expertise to deploy and manage blockchain systems.
5. The Road Ahead
The integration of blockchain and cryptocurrency in logistics is still in its nascent stages but holds immense promise.
Industry players are investing in pilot projects to explore scalability and operational viability. The convergence of these technologies with artificial intelligence and IoT will further revolutionize the sector, enabling predictive analytics, autonomous supply chains, and more.
Conclusion
Blockchain and cryptocurrency are not just buzzwords but transformative tools reshaping the logistics landscape.
By fostering transparency, reducing costs, and expediting processes, these technologies are addressing long-standing inefficiencies in the supply chain.
As adoption accelerates, businesses that embrace this revolution stand to gain a significant competitive edge in an increasingly digital and globalized economy.
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The performance of Bitcoin (BTC -0.53%) this year has been nothing short of extraordinary. It’s now up about 46% since the election on Nov. 5, and 146% year to date. Best of all, Bitcoin recently broke through the $100,000 price level to hit another all-time high just north of $108,000.
But what if I told you that there is another top cryptocurrency that is up more than 120% since the election, and 430% year to date? And that this cryptocurrency also just set a new all-time high? That cryptocurrency is Sui (SUI -3.69%), which now ranks 14th among all cryptocurrencies with a $13 billion market cap.
What is Sui and why haven’t I heard of it before?
If you’ve never heard of Sui, that’s understandable. The cryptocurrency only launched in May 2023, just as the market was emerging from the crypto winter of 2022. So, in many ways, its launch flew under the radar of investors. There were bigger issues to consider. The industry was still coping with the aftermath of the collapse and scandal of crypto exchange FTX in November 2022, and nobody was very interested in hearing about another new cryptocurrency launch.
But fast-forward to August 2024. That’s when 21Shares — the company that partnered with Cathie Wood’s Ark Invest on the launch of spot exchange-traded funds (ETFs) for Bitcoin and Ethereum (ETH -0.79%) — released a research report on Sui, detailing all of its unique characteristics. For example, it described how a new technical upgrade suddenly made Sui faster than any other top blockchain by a substantial margin. It pointed out how Sui was rapidly growing in terms of total value locked (TVL), which is a key metric showing the relative strength of a particular blockchain.
Image source: Getty Images.
The title of the report (“Is Sui a Solana (SOL -0.00%) Killer?”) was very provocative, at least for crypto investors. It suggested that Sui had the technological chops to take on Solana, which now ranks as the fifth-largest cryptocurrency. For several years now, Solana has been positioned as the next Ethereum, so Sui being tabbed as a potential Solana killer is a big deal. In fact, 21Shares suggested that there might be a $68 billion market opportunity for Sui if it was able to take on Solana and win.
How high can Sui go in 2025?
My primary concern right now with Sui is that it may be overheating. Just like Bitcoin, it is smashing through all-time high after all-time high. Right now, Sui is trading at about $4.50 after briefly testing the $5 price level. From the perspective of crypto traders, $5 presents the same psychological price barrier for Sui that $100,000 did for Bitcoin. It took Bitcoin a while to break through the $100,000 level, so Sui may not be able to break through the $5 price level by the end of this year.
But, in 2025, watch out. Just take a look at this comparison chart of Bitcoin and Sui since the presidential election. That leads me to think that the market is very bullish on Sui’s prospects under the Trump administration.
Bitcoin / U.S. dollar chart by TradingView
Moreover, consider the trading volume that Sui is now seeing on Coinbase Global (COIN 1.75%). Sui has become one of the 10 most popular cryptocurrencies on the platform in terms of 24-hour trading activity. Granted, the trading volume in Sui is nowhere near that of Bitcoin or Ethereum. But there’s more activity in Sui than in popular cryptocurrencies such as Chainlink, Litecoin, Cardano, Shiba Inu, and Avalanche.
Best of all, Sui has a major new product launch coming in 2025. It’s a $599 handheld gaming device that is currently available for pre-order online. If that product launch is a success, then it could be off to the races for Sui. It could easily double in price to hit the $10 price level.
This cryptocurrency could soar even higher if it ever realizes its full potential as the next Ethereum. Imagine if you had invested in Ethereum just 18 months after its launch. Most likely, you’d be a crypto millionaire by now. In December 2016, Ethereum was trading around $5, which is roughly where Sui is trading right now. Today, Ethereum trades for about $3,400.
That said, I can’t emphasize enough how speculative Sui is. It is still a baby in crypto terms. It has only been around for 18 months, and it can be difficult to get good data and reliable information about it. So, do your due diligence before investing in Sui, and keep your expectations in check. An investment opportunity like Ethereum might only come around once in a lifetime, so it’s asking a lot for it to happen with Sui as well.
Dominic Basulto has positions in Bitcoin, Ethereum, SUI, and Solana. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, SUI, and Solana. The Motley Fool has a disclosure policy.
A representation of Bitcoin and a price chart are seen in this October 2023 photo illustration. Reuters-Yonhap
South Korea and the United States are conducting joint research to strengthen protection against cryptocurrency heist attempts amid growing concerns of such attacks by North Korea-linked hackers, officials said Sunday.
Based on a recently signed technical annex between the South Korean government and the U.S. Department of Homeland Security, the two sides will jointly develop technologies to prevent cryptocurrency-targeted attacks and to track stolen assets, according to authorities and cybersecurity industry officials.
The science ministry plans to support such research through the Institute of Information & Communications Technology Planning & Evaluation until 2026.
The move comes as the price of bitcoin recently surged to $100,000 after the U.S. presidential election last month, raising concerns of increased attempts by hackers to steal virtual assets.
While the United States collaborates with other countries for cybersecurity research, it is known to have chosen South Korea for research on digital asset tracking technology as North Korea is seen as a key culprit behind cryptocurrency heists.
Under the program, South Korean and U.S. researchers, including those from Korea University and the RAND research institute, will focus on technologies to prevent and track hackers when they steal assets from a cryptocurrency exchange.
They will also focus on understanding how they convert or launder other financial assets they obtain into virtual assets through illegal ransomeware or other methods.
North Korea is known as a major player in cryptocurrency heists, with hackers linked to the country estimated to have stolen $1.34 billion worth of cryptocurrency across 47 incidents this year, according to Chainalysis, a blockchain analysis firm. (Yonhap)
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