{"id":80248,"date":"2024-06-05T07:12:13","date_gmt":"2024-06-05T11:12:13","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=80248"},"modified":"2024-06-05T07:12:56","modified_gmt":"2024-06-05T11:12:56","slug":"ftx-settles-with-irs-over-24b-tax-bill","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ftx-settles-with-irs-over-24b-tax-bill\/","title":{"rendered":"FTX Settles with IRS Over $24B Tax Bill"},"content":{"rendered":"\n

FTX has settled with the IRS for $200 million<\/a> instead of $24 billion, clearing a significant hurdle in its bankruptcy.<\/p>\n\n\n\n

\"FTX
FTX Settles with IRS Over $24B Tax Bill<\/figcaption><\/figure>\n\n\n\n

As per the documents submitted to the Bankruptcy Court for the District of Delaware, FTX has agreed to settle $200 million worth of priority claims against the Internal Revenue Service <\/a>(IRS). <\/p>\n\n\n\n

This sum is payable 60 days after a creditor repayment plan the court has approved is implemented. The estate contested the IRS's $24 billion case, even though FTX attorneys admitted the potential for significant tax obligations. <\/p>\n\n\n\n

The insolvent cryptocurrency business further contended that a multibillion-dollar tax payment \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>might substantially impact the repayment of individual creditors.\u00a0<\/p>\n\n\n\n

The IRS is entitled to $685 million in addition to the $200 million priority payment; nonetheless, the claim is categorized as “lower priority.” Once client payments have been satisfied, the estate can pay this sum.<\/p>\n\n\n\n

FTX Inches Toward Full Bankruptcy Payouts<\/h2>\n\n\n\n

The IRS settlement represents a further step toward the company's 2022 bankruptcy filing and complete creditor payments. Following the fall of the once-dominant cryptocurrency exchange, which its convicted founder, Sam Bankman-Fried<\/a>, led, FTX filed for Chapter 11 protection. <\/p>\n\n\n\n

After several cryptocurrency collection efforts, discounted Solana (SOL) auctions, and catastrophic share liquidations, the company declared about $16 billion for debtor distribution nearly two years later. <\/p>\n\n\n\n

Given that the corporation owes creditors over $12 billion, most clients could receive a repayment of up to 118% of their assets, which is an uncommon result for any bankruptcy case.\u00a0<\/p>\n\n\n\n

Some people assume that administrators and restructuring staff working under CEO and bankruptcy veteran John J. Ray will benefit the most in the interim. <\/p>\n\n\n\n

The troubled company has given permission for $500 million in fees to be paid to legal practices like Quinn Emanuel, Paul Hastings, and Sullivan and Cromwell.<\/p>\n","protected":false},"excerpt":{"rendered":"

FTX has settled with the IRS for $200 million instead of $24 billion, clearing a significant hurdle in its bankruptcy. As per the documents submitted to the Bankruptcy Court for the District of Delaware, FTX has agreed to settle $200 million worth of priority claims against the Internal Revenue Service (IRS). This sum is payable […]<\/p>\n","protected":false},"author":43,"featured_media":80249,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[10893,778,199],"class_list":["post-80248","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bankruptcy","tag-ftx","tag-irs"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/06\/croc_1717582160826.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/80248","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=80248"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/80248\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/80249"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=80248"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=80248"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=80248"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}