🚨 Breaking News: FTX Bankruptcy Update Sparks Controversy Over IRS Tax Claims
In a recent twist in the FTX bankruptcy saga, the cryptocurrency exchange is challenging the Internal Revenue Service (IRS) by urging a Delaware bankruptcy judge to set its tax bill at zero dollars. Here's a breakdown of the latest developments:
FTX vs. IRS: A $24 Billion Dispute
FTX contests the IRS's estimated claims of a staggering $24 billion, asserting that these figures are exaggerated and lack evidential support. The IRS initiated tax audits on FTX in February 2023, initially estimating claims at $44 billion in April, later revising this to $24 billion in November.
IRS Claims: Baseless or Justified?
FTX representatives argue that the IRS's claims are disproportionate to their earnings and potential debt obligations. They maintain that the claims, totaling more than fifty times the debtors' earnings and several times greater than the distributable value available to creditors, are unfounded.
FTX's Strategic Moves Amidst Bankruptcy
Amidst the ongoing bankruptcy proceedings, FTX plans to file an amended Chapter 11 plan in mid-December, initiating a voting process in March with the aim of confirming the plan by June. However, the dispute with the IRS over tax claims remains a critical hurdle.
FTX's Proposed Creditor Repayment Plan
As of December 2023, FTX is undergoing several developments, including an amended proposal for creditor repayment. The proposal aims to return up to 90% of creditor holdings, categorizing customers based on settlement amounts. Notably, customers with settlement amounts below $250,000 can accept the settlement without any reduction in claim or payment.
Restarting FTX Platform for International Customers
FTX administrators are considering restarting the platform for non-US customers. The proposed plan involves organizing creditors into different classes.
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