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12/02/25
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IRS Fights Cryptocurrency Founder’s Plea Amid Financial Privacy Dispute
The Internal Revenue Service (IRS) is seeking to dismiss a plea from a cryptocurrency founder who is contesting summonses issued against him, claiming he wasn’t properly informed. In a memorandum submitted to the Fifth Circuit appeals court, the IRS and the Department of Justice assert that the court does not have jurisdiction over the matter, as there are no legal proceedings existing in the case. The IRS’s initial filing was directed at Rowland Marcus Andrade, the founder of ABTC Corporation, in a federal court.
The IRS’s investigation into ABTC Corporation was triggered by concerns regarding potential breaches of financial reporting regulations in accordance with the Bank Secrecy Act. The agency requested personal financial records from Andrade, who it believes is connected to ABTC. However, Andrade contends that he was not duly notified as stipulated by the Right to Financial Privacy Act (RFPA).
This legal dispute traces back to 2021 when the IRS commenced its inquiry into Andrade. In May of 2023, the IRS issued summonses to major financial institutions such as Bank of America and JPMorgan Chase, demanding relevant financial records. Andrade’s allegation, however, is that the IRS did not provide the required notification per the RFPA guidelines.
Court documents reveal that Andrade’s lawyer eventually found the summonses and sought copies from the IRS. By September of that year, the IRS had withdrawn its initial summonses and sent new ones to Andrade’s business address. These new notifications were returned due to being undeliverable. In response, Andrade filed a lawsuit in Texas in February 2024, aiming to nullify the summonses on the grounds of alleged violations of financial privacy laws.
The district court dismissed Andrade’s request to invalidate the summonses, determining that the IRS had indeed complied with the RFPA by properly notifying him during the second issuance. As the banks involved had already provided the requested information, the court deemed the matter moot. Andrade has since appealed this decision to the Fifth Circuit, seeking an injunction against the IRS from examining the bank records while the appeal is pending. The IRS maintains that Andrade is not entitled to legal fees since their actions complied with the RFPA. The appeal is now awaiting a decision from the Fifth Circuit regarding whether to uphold the district court’s ruling.
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