Dec 19, 2023

FTX is pushing back against a U.S. government's claim for $24 billion in unpaid taxes from the bankrupt crypto exchange.

Video transcript

The process that we're going through here for the is, is usual, the tens of billions of dollars is probably very unusual. And what makes it even more unusual is the impact of what the proof of claim that the IRS has filed is. It's really here going to end up taking away. And that's what we're hearing from debtors counsel. It's going to take away from a payout to injured victims of the failed exchange, which is also something that doesn't typically arise in a bankruptcy proceeding. And that's because a little bit of high level is in, in the bankruptcy, under bankruptcy law. The IRS and tax claims generally get a priority over other creditors, uh particularly unsecured creditors. And that's why I think in trying to put forth a plan to get a payout made to various individuals and move this all forward. They're realizing that a $24 billion payout to the IRS is going to eliminate funds to other people. And that's why it's being challenged.

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