According to bankruptcy papers dated April 27 and 28, the Internal Revenue Service (IRS) of the United States has asserted claims totaling over $44 billion against the estate of the insolvent cryptocurrency exchange FTX and its related firms. Ledger Holdings, the parent business of LedgerX and LedgerPrime, Blockfolio, as well as other FTX entities like West Realm Shires, the legal entity of FTX.US, have all received 45 claims from the IRS. The two claims totalling $20.4 billion against Alameda Research LLC and $7.9 billion against Alameda Research Holdings Inc. are the biggest of the claims.
The filing of the claims under the “Admin Priority” classification may enable the IRS’s claims to take priority over those of other creditors in a bankruptcy case. The IRS is demanding almost $20 billion in partnership taxes, according to the bankruptcy paperwork outlining the $20.4 billion claim against Alameda Research LLC. Millions in income taxes and payroll taxes that were withheld are included in the claim’s remaining amount.
An IRS spokesman said in answer to questions about the situation that “Federal law prevents the IRS from confirming or denying any correspondence with regard to any taxpayer case.”
In its original bankruptcy filings, FTX said that it believed it had between $1 billion and $10 billion in assets overall, but as of January 2023, more over $5 billion in diverse assets had been identified, according to the company’s bankruptcy lawyers. These numbers have altered as a result of the company’s management finding more money in recent months.
The IRS’s accusations against FTX and its related companies might have a big impact on the cryptocurrency market since they could serve as a model for how the agency would tax cryptocurrency holdings and transactions in the future. Both players in the sector and onlookers will be eagerly watching the result of the bankruptcy procedures.