FTX Reaches $24 Billion Settlement in IRS Tax Case

The amount due within 60 days of an implemented court-approved creditor repayment plan is $685 million owed to the IRS, classified as “lower priority” and an additional $200 million as a priority payment. The estate can make this payment when funds become available after satisfying customer payments.

The company owes creditors about $12 billion and may be able to repay most customers up to 118% of their holdings, an unusual outcome for a bankruptcy case. Some speculate that the main beneficiaries of this situation are administrators and restructuring personnel, particularly CEO John J. Ray, a bankruptcy veteran.

The embattled firm has approved $500 million in fees for law firms such as Sullivan and Cromwell, Paul Hastings, and Quinn Emanuel.

Leave a Reply

Your email address will not be published. Required fields are marked *