FTX Settles $24 Billion Tax Claim With IRS in Bankruptcy Court

FTX settled the Internal Revenue Service’s $24 billion claim for a fraction of what the agency said it owed, clearing the way for the crypto exchange to pay out significant customer recoveries.

The IRS will receive a $200 million claim in FTX’s bankruptcy to be paid within 60 days of when the company’s proposed restructuring plan goes into effect. The agency will also receive a $685 million lower priority claim, “payable on a subordinated basis to customers and other creditors” and “to the extent funds are available,” according to a Monday filing in the US Bankruptcy Court for the District ...