According to a report from “The Block,” a court document reveals that the US government’s total claim against the cryptocurrency exchange FTX is expected to be between $3 billion and $5 billion, with the exact amount subject to change due to negotiations with authorities.
The document, submitted on Wednesday (20th), states that the total amount of the US tax claims is still uncertain. However, once all government and tax claims are paid, the debtor can distribute the remaining income to the shareholders.
It should be noted that according to Chapter 11 of the Bankruptcy Code, the claims of FTX customers, Alameda Research’s lenders, administrative expenses, and non-governmental creditors will be paid before any government and tax claims.
According to the court document, the debtor proposes to use 100% of the “SNDY Exempt Funds” (funds or assets returned to the FTX bankruptcy estate as part of a settlement with the US Southern District of New York prosecutor’s office or other government agencies) to distribute to FTX.com customers and Alameda’s lenders, including the settlement arrangement with the cryptocurrency lending company BlockFi.
The document states that after the payment of administrative expenses and non-governmental claims, up to 25% of the distributable value will be used to pay the claims for US federal income tax, while the remaining amount will be used to pay claims from the Commodity Futures Trading Commission (CFTC) and other government agencies.
Related report: “Judge rules for a hearing to take place early next year, speeding up the resolution of FTX’s £2.4 billion tax dispute with the IRS.”
