FTX, the former cryptocurrency giant now in bankruptcy proceedings, may be on the verge of reaching a substantial settlement with the United States Internal Revenue Service (IRS). The proposed settlement, still awaiting court approval, seeks to settle a staggering $24 billion claim for just $200 million.
The crisis at FTX was triggered in November 2022, when the company filed for Chapter 11 bankruptcy protection after facing a serious liquidity crisis and accusations of financial mismanagement. At its peak, FTX ranked as the third largest cryptocurrency exchange in the world. However, its collapse revealed serious financial deficiencies, resulting in a series of legal challenges.
Originally, the IRS had filed claims totaling more than $44 billion against FTX, which were later adjusted to $24 billion. The proposed settlement would mean that the IRS would receive a $200 million priority claim and a $685 million junior subordinate claim, both of which would be integrated into FTX’s reorganization plan. This plan is scheduled to be discussed at a court hearing on June 25.
During a hearing on June 3, John J. Ray III, CEO leading the restructuring of FTX, highlighted the importance of the settlement, stating: “Together, from the most challenging financial disaster I have ever seen, the debtors and their Lenders created enormous value from a situation that easily could have been a near-total loss for customers.”
The reorganization plan is primarily aimed at repaying creditors and customers as soon as possible, with the expectation that more than 90% of assets will be returned by mid-2024. This agreement not only avoids extensive litigation costs but also establishes a clear path to FTX’s numerous creditors.
The fallout from FTX’s collapse has affected multiple stakeholders, triggering heightened regulatory scrutiny over the entire cryptocurrency industry. FTX founder and former CEO Sam Bankman-Fried faces fraud, conspiracy and money laundering charges linked to the platform’s collapse.
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Source: https://portalcripto.com.br/ftx-aproxima-se-de-acordo-com-irs-para-resolver-divida-bilionaria/
