FTX could pay USD $200 million to resolve tax claim – DiarioBitcoin
By Hannah Perez
The tentative settlement represents a notable decrease from the IRS’ initial claim of more than $40 billion.
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- FTX reached a tentative agreement with the US IRS
- The tax agency had initially sued FTX for a debt of USD $44 billion
- The agreement for USD $200 million represents a notable change with respect to the initial figure
FTXthe now-defunct cryptocurrency exchange, could pay a million-dollar sum to leave behind a tax claim from the United States tax authorities.
A recent court filing, which was picked up by several news outlets, reveals that FTX and the US Internal Revenue Service (IRS) have reached a tentative agreement to resolve a $24 billion tax dispute.
According to the document, the failed cryptocurrency exchange could pay a sum of USD $200 million to put the matter with the IRS behind it. Although the agreement is still pending court approval, it would resolve one of the thorniest disputes and most important claims amounting to billions of dollars, as detailed Decrypt.
Substantially lower settlement with the IRS
FTXwhich at its peak became one of the largest exchanges of digital assets in the world, filed for bankruptcy in November 2022 after a huge hole in its finances was revealed.
Shortly after the company’s collapse, the IRS filed a lawsuit alleging that the exchange, founded and formerly run by Sam Bankman-Fried, had a debt of USD $44,000 million. The defense of FTX It rejected the claim shortly thereafter, asserting that the company had no tax debts and demanding that the IRS justify the figure.
After several claims and disputes, the tax agency agreed to reduce the figure to USD $43 billion in September 2023, and subsequently He left the amount at USD $24,000 million at the request of the lawyers.
The latest settlement significantly reduces the IRS’s original claims. As indicated, the agency would agree to settle the tax claim for USD $200 million, an amount that would be paid within 60 days after approval of the plan. The tax authority will also collect USD $685 million as subordinated credit, which will be paid later to clients and other creditors.
These claims will be addressed as part of the reorganization plan proposed by FTXwhose court hearing is scheduled for June 25, as noted Decrypt.
The heritage of FTX, which has been moving forward in the bankruptcy process, said in May that it expected to return all funds to customers and, in fact, expects to pay many of its creditors even more than 100%. The exchange has estimated debt of around $11.2 billion, but anticipates it will have cash on hand totaling between $14.5 billion and $16.3 billion for distribution, as part of the plan.
The news comes just weeks after Bankman-Fried was sentenced to 25 years in prison after being found guilty of fraud charges. conspiracy and money laundering in connection with the exchange’s demise in a trial late last year. Ryan Salame, another executive at FTXwas sentenced last week to 7.5 years.
Article by Hannah Estefanía Pérez / DailyBitcoin
Edited image of Unsplash
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