A $24 Billion Tax Bill Could Impact FTX Recovery Plans
The bankrupt crypto exchange FTX has stated that a proposed $24 billion tax bill from the United States IRS could hinder any potential recovery for victims. The IRS has been pursuing tax arrears from FTX and its sister company Alameda Research since May, initially claiming $44 billion in May but recently reducing it to $24 billion.
FTX Disputes the Claims
In a filing to a Delaware-based bankruptcy court, FTX argued that the claims made by the IRS were baseless and would also affect the funds intended to compensate impacted FTX users. The firm’s lawyers stated that the IRS’s claims lacked legal merit and would delay distributions to those who were genuinely harmed.
The Ongoing Audit Process
Although FTX maintains that the $24 billion claim is unfounded, the IRS is still conducting an audit, which is expected to take another eight months. The dispute over the legitimacy of the claim will be debated in court on December 12.
Assets Recovered and Former CEO’s Conviction
In the meantime, FTX’s administrators have managed to recover approximately $7 billion in assets, including $3.4 billion worth of cryptocurrencies. The former CEO of the company, Sam Bankman-Fried, has been convicted on seven fraud-related charges and is awaiting sentencing.
Hot Take: IRS Tax Bill Puts FTX Recovery at Risk
The proposed $24 billion tax bill from the IRS poses a significant threat to the recovery efforts of FTX and its affected users. FTX disputes the merit of these claims and argues that they lack legal basis. However, while an ongoing audit may further clarify the situation, it could prolong the distribution of funds to those who have suffered losses. The outcome of the court hearing on December 12 will determine the legitimacy of the IRS’s claim and its impact on FTX’s recovery process.
Coinan Porter stands as a notable crypto analyst, accomplished researcher, and adept editor, carving a significant niche in the realm of cryptocurrency. As a skilled crypto analyst and researcher, Coinan’s insights delve deep into the intricacies of digital assets, resonating with a wide audience. His analytical prowess is complemented by his editorial finesse, allowing him to transform complex crypto information into digestible formats.