Crypto Exchange FTX Reaches an Agreement with IRS to Pay $200M
FTX Trading Ltd, the official name for the failed cryptocurrency exchange owned by Sam Bankman-Fried, is attempting to significantly decrease its outstanding tax debt to the United States Internal Revenue Service (IRS).
This latest development is just one part of the ongoing conflict between the struggling exchange and the US tax collection agency.
The company has proposed to pay the IRS a top-priority tax claim of $200 million and a secondary claim of $685 million, according to a legal document filed on June 3.
The FTX Debtors, who are overseeing the company’s bankruptcy proceedings, are arguing that the IRS has wrongly included funds that were misappropriated by Sam Bankman-Fried, as well as other tax obligations, in its calculations.
“…[T]he Debtors strongly dispute the IRS’s claims on several crucial grounds, including but not limited to allegations of income tax liability from the so-called ‘misappropriation income’ resulting from Sam Bankman-Fried’s embezzlement of FTX customer funds, employment tax liability for alleged compensation paid to Mr.
Bankman-Fried and other former leaders of the Debtors, and the potential denial of significant deductions and losses due to insufficient evidence,” stated the filing.
