IRS issues 'John Doe' subpoena to crypto trader SFOX in search of potential tax evaders

A federal court in the Central District of California issued an order authorizing the Internal Revenue Service to issue a "John Doe" subpoena to major cryptocurrency trader SFOX, allowing the tax agency to look for potential tax evaders who used the company's trading services. During 2021, at least the equivalent of $20,000 in cryptocurrency transactions were conducted through SFOX. The lawsuit does not allege any wrongdoing by SFOX with respect to its digital currency business, and that the IRS used the John Doe subpoena to obtain information about possible violations of internal tax laws by unidentified individuals. Such subpoenas have previously been issued to companies including Kraken and Circle.