Elon Musk Is Fighting For The Privacy Of Coinbase Users

Elon Musk, via his platform X, has filed a brief with the U.S. Supreme Court challenging the IRS’s practices regarding access to Coinbase user data. This initiative is part of a broader debate on privacy protection in the crypto space.

Elon Musk defends Coinbase users

X Corp, Elon Musk’s company that manages the X platform, filed an amicus curiae brief with the U.S. Supreme Court on Friday, contesting the IRS’s methods.

The company specifically denounces the use of so-called “no-suspicion” subpoenas allowing the tax authorities to access, without a judicial warrant, the financial data of users on platforms like Coinbase.

The case highlights how the tax authorities obtained, through simple administrative subpoena, three years of transaction statements concerning over 14,000 Coinbase customers, including James Harper, the main plaintiff.

Alongside seven advocacy groups and researchers, X Corp denounces these “no-suspicion subpoenas” as a violation of the Fourth Amendment, which protects Americans against unreasonable searches.

A fundamental issue for the protection of digital privacy

Following this request, the Supreme Court asked the federal government on Monday to formulate an official response, highlighting the importance of this case. The dispute dates back to 2020 when James Harper sued the IRS to contest the seizure of his personal information related to cryptos.

In 2023, a federal court ruled in favor of the IRS, determining that the tax agency was acting within the scope of its legal prerogatives.

The current appeal before the Supreme Court thus marks a new stage in this legal battle, with potentially significant implications for the protection of digital financial data.

This initiative perfectly aligns with Elon Musk’s vision regarding digital governance. The billionaire, who recently sold his platform X to his own company xAI for 33 billion dollars, has always positioned himself as an advocate for privacy and freedom of speech.

By taking a stand for the protection of cryptocurrency users’ data, Musk strengthens his credibility among the tech and crypto communities, particularly sensitive to privacy issues.

The Supreme Court’s verdict could redefine the limits of state power in relation to digital privacy. This case resonates with the recent case of Tornado Cash, a crypto mixing protocol ultimately removed from the OFAC blacklist after a court ruled that the agency had overstepped its authority.

This case resonates with the recent case of Tornado Cash, a crypto mixing protocol ultimately removed from the OFAC blacklist after a court ruled that the agency had overstepped its authority, illustrating the growing tensions between state regulation and digital freedoms.