FTX settled $24bn tax claim with Internal Revenue Service (IRS) in bankruptcy court.

The IRS will receive a $200m claim in FTX’s bankruptcy to be paid within 60 days of when the company’s proposed restructuring plan goes into effect. The IRS will also receive a $685m lower priority claim to be paid after customers and creditors.

The settlement clears a significant hurdle in FTX’s bankruptcy, resolving what could have been protracted and unpredictable litigation between the fallen crypto exchange and its largest creditor.