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Coinbase Escalates Showdown on U.S. Tax Probe as Bitcoin Surges

  • IRS wants data on 14,355 customers, 8.9 million transactions
  • Industry group warns court of ‘dangerous’ threat to privacy
Bloomberg business news
Bitcoin: What’s Coming in the Year Ahead

The 10,000 bitcoins that seven years ago famously paid for the delivery of two Papa John’s pizzas would be worth more than $74 million today.

The exploding value of the cryptocurrency since its first real-world transaction in 2010 is one reason the U.S. Internal Revenue Service is pushing to see records on thousands of users of Coinbase Inc., one of the biggest U.S. online exchanges. The company’s digital currency platform allows gains to be converted into old-fashioned dollars in transactions that the IRS alleges are going unreported.