Crypto News

IRS Files $44 Billion Claim Against the Bankrupt FTX

The Internal Revenue Service (IRS) recently filed claims against the bankrupt crypto exchange FTX and its affiliated entities. These, in total, are worth $44bn and the most significant part of that includes claims against Alameda Research LLC which amount to $20.4bn and $7.9bn each. Furthermore, there are two claims against Alameda Research Holdings Inc. summed up to $9.5bn.

The bankruptcy filings dated April 27 and 28 show that the IRS filed 45 claims against FTX companies. Apart from the already mentioned, these include Ledger Holding, West Realm Shires, and several others.

In the $20.4bn claim against Alameda Research LLC, as per the bankruptcy documents, the company owes the IRS about $20bn in partnership taxes. It also has unpaid income taxes and payroll taxes that amount to millions.

The claims were filed under the “Admin Priority,” which in a bankruptcy case allows the IRS to take priority over the claims of other creditors.

A spokesperson for the IRS said: “Federal law prevents the IRS from confirming or denying any correspondence with regard to any taxpayer case.”

FTX Found $5bn in Different Assets

During a hearing in January this year, the FTX bankruptcy legal team said the company found more than $5bn in different assets. The initial bankruptcy filings showed that the company had around $1bn to $10bn in assets. However, this changed as the company managed to get a hold of additional funds in recent months.

That day, an attorney at Landis Rath & Cobb, spoke on FTX’s behalf, saying:

We have located over $5 billion of cash, liquid cryptocurrency, and liquid investment securities measured at petition date value. [It] just does not ascribe any value to holdings of dozens of illiquid cryptocurrency tokens, where our holdings are so large relative to the total supply that our positions cannot be sold without substantially affecting the market for the token.

Adam Landis said.

As one might suspect, the IRS’ filed claim caused some commotion amongst the FTX creditors. Some say it’s made up, while others are more lenient.

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