The ongoing bankruptcy case of FTX, a defunct crypto exchange, has taken a complex turn with the Internal Revenue Service (IRS) seeking around $24 billion from the exchange. This amount has been reduced from the initial claim of $44 billion filed by the IRS in April. FTX lawyers are disputing the method used by the IRS to calculate this figure, highlighting the history of financial losses and the absence of distributed dividends or earnings. The outcome of this legal battle could have significant implications for the potential payouts to victims and creditors of the exchange’s collapse.
The IRS claim of $24 billion further complicates any potential relaunch of the exchange, known as FTX 2.0. Discussions with potential investors for a relaunch are already underway, but the massive IRS claim poses a major obstacle. A key hearing is scheduled for December 13th, and FTX is currently cooperating with the IRS by providing requested documents and addressing information requests.
FTX founder and former CEO Sam Bankman-Fried has also faced legal troubles, with a jury finding him guilty of wire fraud and conspiracy charges. His sentencing is scheduled for March 28th, 2024, and he could face a lengthy prison term.
The IRS’s increasing interest in the crypto industry and its introduction of new rules have not gone unnoticed by U.S.-based crypto holders. The agency’s Criminal Investigation Unit is reportedly taking on more crypto tax cases, with half of the active cases involving tax issues. The IRS’s efforts to surveil cryptocurrency transactions have raised concerns among individuals involved in the digital currency space.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Sam Bankman-Fried |
| Companies | Bloomberg, FTX, CNF, Internal Revenue Service (IRS) |
| Currencies | None |
| Securities | None |
