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Could this happen to Coinbase?

By February 6, 2017December 14th, 2023No Comments

On February 3, 2017, U.S. Magistrate Judge Thomas Rueter ruled that Google must provide emails stored overseas to the FBI for their domestic fraud investigation, despite an earlier decision finding no such obligation for Microsoft.

The ruling was made in Philadelphia that transferring emails from a foreign server so the Federal Bureau of Investigation (FBI) can read them as a part of a domestic fraud probe was a legally sound position.
Judge Rueter noted that the emails, which are routinely stored overseas by Google, would only be read in the United States, causing “no meaningful interference.”
“Google regularly transfers user data from one data center to another without the customer’s knowledge,” further Judge Rurter stated:

“Such transfers do not interfere with the customer’s access or possessory interest in the user data. Even if the transfer interferes with the account owner’s control over his information, this interference is de minimis [minimal] and temporary.”

This Federal decision comes seven months after the US Circuit Court of Appeals in New York found that Microsoft did not have to show foreign emails to American authorities unless investigators go through local privacy laws first, a verdict that was upheld on January 24, 2017.
The decision was welcomed by privacy advocates, the American Civil Liberties Union and the US Chamber of Commerce. In both cases, authorities sought the emails under the Stored Communications Act from 1986, which addresses disclosure of electronic records held by third party internet providers.

The Judge’s rationale that bringing a file back to the United States is not a seizure because Google moves data around all the time and ‘this interference is de minimis and temporary’ is disputed by legal experts asserting that “Google is a private company not regulated by the Fourth Amendment, so whether it moves around data is irrelevant. And I don’t see what is ‘de minimis and temporary’ about the government ordering Google to make a copy of your email pursuant to a court order.”
Google, which receives over 25,000 annual requests for user data from US authorities, including the FBI, plans to appeal the decision and states,”The magistrate in this case departed from precedent, and we plan to appeal the decision”.
Companies such as Google, Facebook and Yahoo have come under increased public pressure to do more to ensure their users’ privacy in recent years, particularly in the wake of revelations about mass surveillance by the NSA (National Security Agency) revealed during Barack Obama’s presidency. Michael B. Nelson suggests, “the Google holding provided the U.S. Treasury with an open door for summonsing emails between Coinbase and its customers what greatly enhance the identification of its customers.”

Michael Nelson

Michael has great depth of experiences and skills that evolved from over 35 years of representing international businesses, executives, expatriates and multi-national families. From these years of successful legal representations of CEOs of Fortune 500 Companies to family clients with needs from complex estate planning to international trusts and private foundations. He is committed to his clients, always finding better alternatives or options for his clients. Dedication to the client is synonymous with his name.