FTX delaying customer fund recovery because of the IRS’s high tax demand
FTX’s bankruptcy team is facing huge pressure because of the IRS’s demand for $24 billion tax, which is 3 times the actual amount of funds FTX is holding.
FTX was a popular digital assets trading platform but in Nov of the last year went bankrupt along with 120+ subsidiaries of this company. FTX co-founder Sam Bankman-Fried allegedly misused customers’ funds for personal benefits e.g. to purchase private jets, political donations, and expensive gifts to friends & relatives.
In a recent filing of FTX, the FTX leadership said that the company failed to generate revenue or any kind of profit over the past 3 years of period but still the Internal Revenue Service (IRS) demanded $24 billion tax from the FTX exchange.
According to FTX, FTX never distributed dividends or earnings and “never earned anything anywhere near amounts that could support the IRS claims for $24 billion in taxes”
Further, the FTX leadership explained through the filing that the IRS’s demand could be fulfilled via the use of the funds of FTX customers which are the real victims of the FTX bankruptcy & fraud.
Furthermore, FTX noted that the IRS is only trying to go through its process to collect tax from the bankrupt exchange but this government body needed to look at this case with more clarity because they are only going to hurt FTX customers, who lost their money on the FTX platform.
FTX also alleged that the IRS used the wrong method to calculate tax & tax due fines.
It is worth it to note that the IRS body initially in April said that FTX to pay $44 billion. Later In September, it amended that amount to $43 billion. In November, the number went again down to $24 billion.
FTX token (FTT)
FTX (FTT) is the native token of the FTX exchange and this token surging rapidly these days, as a part of bull momentum as well as manipulation.
In the last 30 days, the trade price of this token surged 70%, which is purely a manipulation because FTX’s current leadership clearly said that they will never use FTT tokens in the future in the FTX’s related any kind of plan directly or indirectly.
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