The bankrupt crypto exchange FTX is expressing concern over a proposed $24 billion tax bill from the IRS, stating that it will likely absorb any potential recovery intended for victims.
Initially seeking $44 billion across 45 claims, the IRS has now reduced the amount to $24 billion.
In a filing on December 10 in the U.S. Bankruptcy Court for the District of Delaware, FTX argued that the IRS claims lack merit and would impact the funds designated for compensating affected FTX users.
“That would effectively prevent most of FTX’s creditors—themselves victims of fraud—from obtaining any meaningful recovery,” the firm said.
FTX, a company facing allegations of fraud, is disputing the IRS’s claim that it owes $24 billion in taxes. FTX argues that the IRS’s assertion lacks a reasonable basis and is significantly higher than any income the company ever generated.
FTX’s lawyers criticize the IRS for causing delays in compensating legitimate creditors by relying on its processes. FTX insists that the $24 billion claim is unfounded and should not be subject to estimation.
Despite the ongoing IRS audit, FTX and the U.S. government are scheduled to present their arguments in court on December 12.
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