Bankrupt cryptocurrency exchange FTX has been under scrutiny by the US Internal Revenue Service (IRS) since last year, with the tax agency initially claiming unpaid taxes of $44 billion in April, which was later revised to $43 billion in September and further reduced to $24 billion in November. However, there have been significant developments in FTX’s tax issues.
FTX plans to pay $200 million
According to legal documents on June 3, the restructuring team is working to significantly reduce FTX’s tax debt to the IRS. FTX plans to only pay the IRS $200 million in priority tax claims and $685 million in secondary claims. Priority claims, such as taxes, must be paid before other debts, while secondary claims are paid only after fulfilling higher priority obligations.
The FTX creditors, who are managing the company’s bankruptcy affairs, argue that the IRS mistakenly included funds misappropriated by SBF and other tax liabilities. The creditors strongly oppose the IRS’s claims, stating that these debts include income tax liabilities resulting from SBF’s misappropriation of FTX client funds, former executives’ employment tax liabilities, and undocumented deductions and losses.
However, the IRS disagrees with the FTX creditors’ arguments and plans to seek substantial tax debts if a settlement cannot be reached. The deadline for objections in this case is June 17, 2024, and the hearing date is June 25, 2024.
How to confirm if FTX claims KYC is complete?
For “former” users, the most concerning issue is the claims process. On September 18 last year, the FTX customer claims portal Claims.ftx.com was opened for users to submit their claims applications, complete KYC, and submit proof of debt. You can log into your account again to confirm your current KYC progress.
If it is not displayed as “On Hold” or “Verified” as shown in the image below, please follow the tutorial on the FTX website, which includes 10 steps to guide you through the application process, KYC submission, and eventually obtaining the official proof from Kroll.
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