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IRS Targets Bankrupt FTX Crypto Exchange With $44B Blow — Will They Withstand Financial Assault?

Published 11/05/2023, 13:28
Updated 11/05/2023, 14:40
© Reuters.  IRS Targets Bankrupt FTX Crypto Exchange With $44B Blow — Will They Withstand Financial Assault?

Benzinga - The US Internal Revenue Service (IRS) has submitted claims totaling almost $44 billion against the estate of the now-defunct cryptocurrency exchange FTX (CRYPTO: FTT) and its associated companies.

Bankruptcy documents filed on April 27 and April 28 indicate that the IRS presented 45 claims against various FTX entities, including West Realm Shires (FTX.US's legal entity), Ledger Holdings (parent company of LedgerX and LedgerPrime), and Blockfolio, among others.

The most substantial claims involve a $20.4 billion demand against Alameda Research LLC and a $7.9 billion claim against Alameda Research Holdings Inc., as well as two other claims totaling $9.5 billion.

Also Read: UK Government Plans Crypto Seizures On Tax Evaders — Are Your Coins Safe?

Designated as "Admin Priority" requests, the IRS's claims might potentially hold higher priority compared to other creditors' claims during bankruptcy processes.

A closer look at the $20.4 billion claim against Alameda Research LLC shows that the IRS is seeking approximately $20 billion in partnership taxes, with the remaining amount encompassing millions in withheld income taxes and payroll taxes.

Read Next: Cryptocurrency's Inflation Protection Hype Put To The Test: History Found Lacking

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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