A Fifth Circuit panel of judges recently ruled that Fourth Amendment rights do not apply to cryptocurrency transaction data that stems from an exchange. The U.S. court ruled against the defendant, Richard Gratkowski, who attempted to leverage the Fourth Amendment in an appeal.
According to the ruling of a three-judge panel from the Fifth Circuit courts, the American government’s Fourth Amendment does not apply to bitcoin transactions used in a crime if they stem from virtual currency exchanges. Richard Gratkowski was charged with allegedly making payments to a child pornography website, and sent bitcoin (BTC) to the web portal via his Coinbase account.
Now the Federal Bureau of Investigation (FBI) searched Gratkowski and found illicit materials at his home and they subpoenaed Coinbase for transaction records. However, Gratkowski appealed the case and said that his bitcoin transaction history deserves to be protected by the Fourth Amendment.
Specifically, Gratkowski leveraged the 2018 Supreme Court ruling from Carpenter v. the…