FTX has agreed to pay the IRS $885 million to settle a $24 billion tax claim levied during its bankruptcy proceedings. The payment includes $200 million in priority claims due within 60 days of a court-approved repayment plan.
FTX’s attorneys acknowledged the potential for large tax obligations but argued that such payments could impact creditor reimbursements. The remaining $685 million owed to the IRS is classified as “lower priority” and will be paid when funds are available.
This settlement is a significant step toward full creditor payments following FTX’s 2022 bankruptcy. The firm has announced nearly $16 billion for debtor distribution, potentially allowing for customer reimbursements of up to 118% of their holdings.
The settlement demonstrates a strategic move towards financial recovery and restructuring, setting a precedent in bankruptcy cases involving substantial tax claims.
