FTX Settles $24 Billion IRS Tax Claim for $200 Million in Bankruptcy Court

Jun 4, 2024, 03:51 PM

Cryptocurrency exchange FTX has reached a settlement with the IRS for a $24 billion tax claim in bankruptcy court. The IRS will receive $200 million in priority claims and $685 million in lower priority claims. This settlement, which is a fraction of what the IRS originally demanded, clears the way for FTX to pay out significant customer recoveries. FTX, which went bankrupt in November 2022, announced that almost all of its customers could get back what they lost in cash, and then some, under a newly proposed plan.