FTX Warns IRS Tax Bill Could Wipe Out Recovery for Creditors

FTX Trading, facing a proposed $24 billion tax bill from the U.S. IRS, warns that any “meaningful recovery” for creditors could be swiped away. FTX contests the IRS claims, deeming them “meritless” and arguing that the tax bill exceeds any earnings the company has made. The IRS had initially pursued $44 billion across 45 claims but reduced it to $24 billion. FTX suggests that if the IRS claim stands, it could jeopardize funds meant for reimbursing affected FTX users. The situation highlights the complex intersection of crypto exchanges, taxation, and regulatory challenges. (Source: Cointelegraph)