Bankrupt cryptocurrency exchange FTX has been under investigation by the US Internal Revenue Service (IRS) since last year. In April of last year, the IRS initially claimed that FTX owed $44 billion in unpaid taxes. The amount was later revised to $43 billion in September and further reduced to $24 billion in November. However, significant progress has been made regarding FTX’s tax issues.
FTX plans to pay $200 million. The restructuring team is working diligently to significantly reduce the tax debt owed to the IRS. According to legal documents on June 3rd, FTX plans to pay only $200 million in priority tax claims to the IRS and $685 million in secondary claims. Priority tax claims, such as taxes owed, must be paid before other debts, while secondary claims are only paid after fulfilling higher-priority obligations.
The FTX creditors managing the bankruptcy proceedings argue that the IRS mistakenly included funds misappropriated by SBF and other tax liabilities. The creditors strongly oppose the IRS’s claims, as these debts include income tax liabilities resulting from SBF’s misappropriation of FTX client funds, former executives’ employment tax liabilities, and unsubstantiated deductions and losses.
However, the IRS disagrees with the arguments put forth by FTX creditors and plans to seek substantial tax debts if a settlement cannot be reached. The deadline for objections in this case is June 17, 2024, with a hearing scheduled for June 25, 2024.
How to confirm if FTX claims KYC is complete? For “former” users, the most important concern is the claims process. On September 18th last year, the FTX customer claims portal Claims.ftx.com was opened, allowing users to file claims and complete Know Your Customer (KYC) verification and submit debt evidence. You can log into your account again to check the progress of your KYC.
If it does not show “On Hold” or “Verified” as displayed in the image below, please follow the tutorial previously written by the FTX team, which includes 10 steps on how to fill out the application, upload KYC documents, and ultimately receive the official Kroll certification.
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Related reports:
– Latest progress on FTX repayments: 98% of creditors will receive 118% cash repayment! The earliest distribution will be in September.
– Chainsight analysis: Did Taiwan Steaker place 83% of customer funds in FTX? A total of $40 million?
– FTX repayment is coming! The first batch of compensation will be issued by the end of 2024, and the creditor registration deadline is extended to June 30th.