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"BEWARE: Coinbase caused me to be audited by the IRS and a lien & garnished wages imposed for income I didn't make"

2022-01-31 [vendor] Redditors discover tax season
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Incident Details

With so many newcomers to cryptocurrencies this year, and the often complex tax situations cryptocurrency trading can create (assuming it’s reported at all), some traders are beginning to receive unpleasant surprises in the mail. One Redditor has posted in horror after receiving a letter showing they owe upwards of $100,000 to the IRS.Questions like “How can crypto be a viable currency if every transaction is taxed?” are beginning to pop up as well, and more than a few commenters have described their plans to not report any of their crypto activity — certainly a wise thing to be discussing on a public Internet forum.

Technical Details

Vendor / Product
Redditors discover tax season

Timeline

  1. 2022-01-31 Breach occurred
  2. 2022-01-31 Publicly disclosed