FTX Moves to Eliminate $24 Billion Tax Claims in Bankruptcy (1)

FTX Trading Ltd. asked a bankruptcy court to knock out $24 billion in estimated claims brought by the Internal Revenue Service, arguing the government has failed to provide “any rational basis” for the figure.

The tax claims lodged by the IRS have gone “unexplained” for months and “threaten to halt the Debtors’ progress and any distribution to customers and other creditors indefinitely,” FTX told the US Bankruptcy Court for the District of Delaware in court papers Wednesday. The motion comes as FTX’s advisers work to recover billions of dollars in transfers made before the company filed for bankruptcy.

The fallen ...