https://unchainedcrypto.com/irs-files-44-billion-claims-against-bankrupt-ftx/

 
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IRS Files $44 Billion Claims Against Bankrupt FTX

The IRS' claims against the crypto exchange could take precedence
over claims of other FTX creditors.

 
 
 
 
 
 
[ffa-scaled]
Photo by Alexander Grey on Unsplash
 
Samyuktha Sriram
May 10, 2023 10:35 pm
Updated May 10th, 2023 at 10:35 pm GMT+0000

The U.S. Internal Revenue Service (IRS) has filed 45 claims against
the bankrupt FTX and its subsidiary companies.

According to bankruptcy filings on April 27 and 28, the IRS filed
claims worth nearly $44 billion against the firms, including FTX.US
and Alameda Research. 

Based on the department's assessment, Alameda Research LLC owes a
whopping $20.4 billion in unpaid partnership taxes and federal
payroll taxes.

A snippet of the tax bill shared online details several hundred
million dollars-worth of claims filed under the Federal Insurance
Contributions Act (FICA) and Federal Unemployment Tax Act (FUTA) -
taxes that correspond to full-time employees. This suggests that the
department reclassified all of FTX's contractors to full-time
employees in order to arrive at such a large tax payroll-related tax
claim.

    The insane Alameda Research LLC tax bill circulating is real. The
    major balances don't have detail, but in part it appears the IRS
    went back and reclassified ALL employees from contractors to
    employees and hit them for unpaid employer-side employment taxes.
    pic.twitter.com/GuY6czcgMn

    -- Meat (,) (@MeatTC_) May 10, 2023

The IRS also filed claims against West Realm Shires, the legal entity
behind FTX.US, Ledger Holdings, BlockFolio and other entities
associated with the bankrupt crypto exchange.

The claims are filed under "Administrative Priority," meaning that
they take priority over most other unsecured creditors of the
exchange. Unsurprisingly, this was not well received by the average
FTX creditor with funds stuck on the exchange.

"Would love to understand how they came up with these numbers and
what their plan is to acquire these assets...FTX/Alameda never even had
this much money," said Nick van Eck, a partner at General Catalyst.

Last month, Unchained reported that the FTX bankruptcy estate had
recovered $7.3 billion worth of assets - a figure that is nowhere
near what the IRS now claims the firm owes in taxes. Attorneys for
the bankrupt exchange were considering reopening the exchange as part
of a reorganization plan that would return value to creditors.

Posted in: Business
Tagged in: bankruptcy crypto FTX IRS
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