Crypto change Kraken has called the Internal Earnings Service’s (IRS) investigation into its users an “unjustified appreciate hunt.”

Per a Wednesday document from Bloomberg, Kraken has requested a federal courtroom in San Francisco to portray the IRS to face down.

“As an alternative of abide by Coinbase’s ground tips, the IRS doubles down, making even more colossal requests and relying on a thinner rationale,” said Kraken in a courtroom submitting on April 24.

Kraken’s question for the federal courtroom’s intervention comes after the IRS submitted a petition to enforce a summons, in the hunt for records on the crypto change’s users that transacted no lower than $20,000 in a financial 300 and sixty five days between 2016 and 2020.

The IRS used to be granted permission to wait on the summons in Could perchance well merely 2021, which the agency said would be linked to their investigation into cryptocurrency users who will be failing to conform with their tax duties.

On the opposite hand, in February, the IRS petitioned the courtroom to enforce the summons, claiming that Kraken had no longer complied with the summons and had no longer produced the books, recordsdata, papers, and other records that the agency demanded.

Within the submitting on Friday, Kraken argued that the IRS’ demands exceeded the boundaries place by U.S. District Mediate Jacqueline Scott Corley in a equivalent case six years ago. Kraken’s lawyers claimed that in this instance, the IRS “wants more — and for a necessary bigger universe of users.”

A hearing has been place for next month for the presiding make a dedication to listen to arguments on the case.

Earlier this 300 and sixty five days, Kraken paid a $30 million lovely to the U.S. Securities and Alternate Commission (SEC) to select a lawsuit when it comes to its cryptocurrency staking services. As a results of its compliance with the SEC’s portray, Kraken accounted for the most staked ETH withdrawn since the Shanghai Upgrade went dwell on the mainnet.