Coinbase Exchange Sends Tax Forms to Clients

The 1099-K form was received by those Coinbase users who carried out more than 200 transactions within a year for more than $20,000
02 February 2018   246

On January 31, Coinbase, a digital currency wallet and platform based in San Francisco where merchants and consumers can transact with digital currencies like Bitcoin, Ethereum, and Litecoin, has issued a 1099-K tax forms and sent them to some of its clients in the United States. 

In the United States, Form 1099-K "Payment Card and Third Party Network Transactions" is used to report payments received through reportable payment card transactions (such as debit, credit, or stored-value cards) or settlement of third-party payment network transactions.

According to Coinbase, the 1099-K form was sent to those clients who have processed more than 200 receipt transactions, or transacted more than $20,000 during past year, including the users of "business use" accounts.

We used the best data available to us to determine whether your account activity qualifies as Business Use, including but not limited to factors such as completion of a merchant profile or enabling merchant tools.

Coinbase Statement

The move of Coinbase disappointed many clients of the exchange as they understood that their transactions history would be reported to the The Internal Revenue Service, which is the tax collection agency that administers the Internal Revenue Code enacted by Congress. Moreover, some customers have reported that the figures in the tax forms were higher than they expected.

Coinbase Confirmed Multiple Charge Issue

Some users were charged for up to x17; Coinbase reports these charges "are in the process of being refunded"
16 February 2018   43

After numerous complaints from users of Reddit, the popular platform for buying Crypto-currency Coinbase confirmed the presence of a bug in the system, because of which the payment for the same purchases was written off several times, in some cases up to 17 times.

We can confirm that the unexpected charges are originating from our payment processing network, and are related to charges from previous purchases. To the best of our knowledge, these unexpected charges are not permanent and are in the process of being refunded. We are running joint investigations with all parties involved, and will provide updates as we receive them.
We are actively investigating some reports from our customers about unexpected credit or debit card charges appearing on their statements from previous Coinbase purchases.

Coinbase Team

This is what affecte users say:

So coinbase hacked?

i noticed double charges posts but 17x what the fuck....2x is a CB mistake, 17x is a hack...

only thing that makes sense... calling bank.. and making a CB ticket...

thepokernit on Reddit

The company does not specify exactly what the bug was caused, but reports that it is solving the problem, and asks users to report all the unplanned charges in the discussion at Reddit.