U.S. Officials to Seize Funds from Victims of Bankrupt Crypto Firm FTX Trading Ltd.
The Internal Revenue Service (IRS) is demanding $24 billion in unpaid taxes from bankrupt crypto firm FTX Trading Ltd. If a judge does not reject this demand, the IRS will seize money from the victims. However, FTX lawyers argue that the IRS must substantiate its claim and show how it assessed the taxes owed.
Dispute Over Unpaid Taxes
A dispute has been ongoing between the IRS and FTX’s bankruptcy estate regarding the amount owed in unpaid taxes. While FTX claims it owes nothing, the IRS wants to recover as much as $24 billion to repay creditors.
“This Alice in Wonderland argument has no support in the law.”
FTX filing
The initial claim by the IRS was for $44 billion, which was later reduced to $43 billion in September and then to $24 billion in November. The debt is said to be related to income taxes, employment taxes, and penalties from 2018 to 2022.
FTX’s Bankruptcy and Legal Troubles
Last November, FTX filed for bankruptcy while its former CEO, Sam Bankman-Fried, was convicted of defrauding users and investors. The next bankruptcy hearing is scheduled for December 13th, and Bankman-Fried is set to be sentenced on March 28th, 2024.
Hot Take: U.S. Officials Seek Unpaid Taxes from Bankrupt Crypto Firm
The IRS is engaged in a legal battle with bankrupt crypto firm FTX Trading Ltd. over unpaid taxes amounting to $24 billion. If successful, U.S. officials will seize funds from the victims of FTX. However, FTX’s lawyers argue that the IRS needs to provide evidence to support its claim. This ongoing dispute highlights the complexities surrounding taxation in the crypto industry and raises questions about the accountability of crypto firms. With FTX’s former CEO facing legal troubles, it remains to be seen how this case will unfold and what implications it may have for future tax regulations in the crypto space.
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