The U.S. government’s claims against bankrupt cryptocurrency exchange FTX are expected to total between $3 billion and $5 billion, subject to changes and negotiations with the authorities, according to a court filing on Wednesday.
The total amount of the U.S. tax claim is still uncertain, the filing in the U.S. District Court for the Southern District of New York said, but once all government and tax claims are paid, the debtor can use any remaining proceeds to distribute to shareholders.
However, it is important to note that under Chapter 11 priorities for real estate, FTX customers, Alameda Research lenders, administrative fees and non-governmental creditor claims are paid before government and tax claims.
The Debtors propose to use 100% of the “SNDY Redemption Proceeds” (funds or assets returned to FTX Real Estate by the United States Attorney for the Southern District of New York or other governmental authority as part of the redemption process) to distribute to: FTX.com customers and Alameda lenders, including the settlement with BlockFi, according to a court filing.
Up to 25% of the distributable value, excluding administrative expenses and non-governmental creditors, may be used to pay U.S. federal income tax claims and the remainder may be used to pay claims of the Commodity Futures Trading Commission and other government agencies. famous.
$24 billion in unpaid taxes
Last December, the Internal Revenue Service said FTX owed $44 billion in unpaid taxes, later adjusting that amount to $24 billion. However, it is unlikely that it will be fully recovered.
According to court filings dated September 11, 2023, FTX Assets reported recovering approximately $7 billion in assets. However, this figure is likely to have increased in the value of the US dollar in subsequent months due to the ensuing cryptocurrency bull market.
FTX filed for bankruptcy protection in November 2022. Former CEO Sam Bankman-Fried was found guilty of defrauding FTX users and investors in November 2023 and is currently awaiting sentencing.
Yesterday, FTX’s current CEO, John J. Ray III, called Bankman-Fried’s claim that there was ‘zero’ harm to customers from the platform’s catastrophic collapse as ‘reckless’ and ‘false’. He raised an objection by labeling it as:
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