Bitcoin Prices Crash Following Court Subpoena Rumors

Jeff ChiuAP Images

Bitcoin prices have fluctuated wildly lately, hitting a high of an amazing $11,155.20 per coin before dropping rapidly. The digital asset that is often valued by those who prefer privacy and anonymity has gone up over 900 percent in the last 12 months, ut started to take a nose dive as reports of court subpoenas surfaced. The United States government appears to be focusing on Bitcoin exchanges such as Coinbase as a judgement surfaced on Twitter that appears to order Coinbase to release documents that reveal personal information linked to transactions in excess of $20,000.

Multiple reports surfaced Wednesday from users who could not log into Coinbase or Gemini’s websites. The major trading sites mentioned these outages on their social media pages, reassuring customers that the outages were temporary and normal traffic could resume soon. Both companies have cited a surge in visits as the cause of the delay and claim the issues are resolved at the time this article was published.

Professor Alan Woodward, a security expert, uncovered what appears to be a copy of a judgement against Bitcoin exchange Coinbase and details information that must be released to District Courts. If found accurate, this would not be the first time Coinbase received a subpoena. The Internal Revune Service (IRS) has engaged in several legal battles with Coinbase over the last year.

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The digital currency is popular among multiple groups as it is seemingly anonymous, does not have a physical form, and is transferred via computer code similar to e-mails. While some experts warn against the speculative nature of the investment, the value has grown rapidly and has survived several dips. Starting with a value of only a few cents per coin, Bitcoins are now gathering increasing attention from regulatory agencies worldwide.

[Image by Kin Cheung/AP Images]

Although it remains to be seen whether this will be another dip in price or a market crash for Bitcoin, it has financial giants paying attention. Consumers are rushing to a form of currency that does not have a bank guarantee, which could is reassuring for those who are concerned about the value of the dollar. Investors will be watching closely as news unfolds about Bitcoin’s market crash.