Top Fintech founder Mike Cagney took to X to slam Coinbase (NASDAQ:COIN) and its tax documentation process.
Cagney founded two Fintech unicorns, SoFi (NASDAQ:SOFI) and Figure Technologies (NASDAQ:FIGR).
In the US, tax filings are due this month on April 15th. Today, investment platforms automatically generate most of these documents, typically emailing, mailing, and making them available via download for account holders.
Cagney lambasted Coinbase, a leading multi-asset investment platform in the US while adding some shade regarding the firm and its alleged role in holding up the CLARITY Act. He stated:
“I got a 1099-misc from [Coinbase] custody. I have three accounts at Coinbase – I think the grand total of assets is $10. The $1099-misc said I made $1,600 last year. I called [Coinbase Support]. Total nightmare. You sent me the 1099-misc. “Please tell me where that money is from?” Instead I got endless runaround that ended with, “You need to consult your tax advisor”. Thanks alot. I can’t believe people still use them. And now that I’m on the rant, why do they get to hold up Clarity? No one in blockchain cares what they think.”
He later went on to state a better solution would be for AI to handle it:
“Agentic support in your self custody wallet. We’re going to build that… “Produce a 1099-int for me across all of my accounts…”
There have been other reports regarding spotty tax documentation emanating from the Coinbase platform.
As many of these documents are forwarded directly to the US tax authorities, inaccurate forms may potentially create legal issues for tax payers as the IRS can be notoriously aggressive in pursuing alleged scofflaws.
