Musk’s X Backs Coinbase in Supreme Court Fight Over IRS Probe

A Coinbase user claims his transaction data was handed over to the IRS as part of a large-scale probe targeting more than 14,000 people.

Written By:
Dishita Malvania

Reviewed By:
Dhara Chavda

Musk’s X Backs Coinbase In Supreme Court Fight Over Irs Probe

Elon Musk’s social media platform, X, is urging the U.S. Supreme Court to prevent the government from accessing user data without proper legal justification. The company has filed a legal brief supporting a case against the Internal Revenue Service (IRS), which is accused of collecting financial records from thousands of users without a warrant.

The case centers on James Harper, a Coinbase user who claims his transaction data was handed over to the IRS as part of a large-scale probe targeting more than 14,000 people. Harper argues that this type of mass data collection violates privacy rights, and X has stepped in to back his claims. The company says government agencies should not be allowed to request user data without probable cause.

According to a source close to X, the company believes this case raises concerns about government overreach. If authorities can obtain user data without a search warrant, it sets a precedent that could impact all online platforms, not just X or Coinbase. Legal experts say that if the Supreme Court agrees to hear the case and rules in Harper’s favor, it could limit how much access law enforcement has to user data.

Musk, who acquired X in 2022, has been outspoken about protecting free speech and digital privacy. Under his leadership, the company has resisted government requests for data in several countries, including Brazil, India, and Australia. This latest legal move reflects his ongoing battle against what he sees as government overreach.

The timing of X’s involvement is also significant, as the U.S. government is considering expanding its surveillance policies. The Department of Homeland Security recently proposed new rules that would allow authorities to collect more social media data from visa applicants and residents, raising further privacy concerns.

X’s fight for user privacy also ties into its growing presence in financial services. The company is preparing to launch X Money, a digital wallet and payment system, with Visa as a partner. As it moves into financial transactions, its stance on data privacy becomes even more important.

The legal brief was filed by the Pacific Legal Foundation, a law firm specializing in civil liberties. The Supreme Court has not yet decided whether to hear the case, but its outcome could have long-term effects on how the government accesses private financial and social media data.

Also Read: Coinbase Employee Accused of Accessing User Data for Phishing



Dishita is a skilful content writer and have been growing her interest in crypto lately. She likes to write in other areas as well. She loves travelling & have pretty decent photography skills. She is a Baker and wants to open her Bakery. She love dogs and wish to pet them someday.
Dhara is a crypto content analyst and writer with over 2 years of experience in the industry. Dhara has a deep understanding of the crypto market and is well-versed in various blockchain technologies. Dhara is also an avid trader and stays current with the latest trends and news in the crypto world. With Dhara's expertise and passion for the industry, readers can expect insightful and informative content.