05-11-2023, 06:03 AM
US Tax Department Claims $44 Billion from Bankrupt FTX
<p>The US Department of Treasury and Internal Revenue Service (IRS) have filed 45 claims, totaling about $44 million, against bankrupt crypto exchange FTX and other affiliates.
</p><p>US Tax Claims against FTX
</p><p>The <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__main-term" id="41b3ef0d-d805-441d-8443-121890264e94">bankruptcy</a> filings on April 27 and 28 show that the US tax agency's claims against several FTX companies, which includes Bahamas-registered FTX Trading Ltd.; Alameda Research; West Realm Shires, which operated the US affiliate of FTX; Ledger Holdings, which is the parent of LedgerX and LedgerPrime; Blockfolio; and a few others. FTX recently <a href="https://www.financemagnates.com/cryptocurrency/ftx-sells-ledgerx-for-50-million/">sold LedgerX for $50 million</a>.
</p><p>The initial bankruptcy filings of FTX estimated its assets to be between $1 billion and $10 billion. However, the FTX bankruptcy attorneys have already <a href="https://www.financemagnates.com/cryptocurrency/fallen-ftx-exchange-recovers-over-7-billion-thanks-to-surging-btc/">recovered $7.3 billion in assets</a>, meaning the bankrupt empire's liabilities are much higher than its assets.
</p><p>The largest claims of the US Tax Department are against Alameda Research LLC, with two individual claims of $20.4 billion and $7.9 billion, and another two claims against Alameda Research Holdings Inc., totaling $9.5 billion.
</p><p>The $20.4 billion claim is against the company's partnership and payroll taxes due. These claims are labeled as 'administrative priority,' meaning they can supersede the claims of <a href="https://www.financemagnates.com/cryptocurrency/media-giants-ask-court-to-release-details-of-9m-ftx-customers/">other unsecured creditors</a> during the bankruptcy process.
</p><p>The Complicated US Tax Regime
</p><p><a href="https://www.financemagnates.com/tag/ftx/">FTX </a>primarily operated from outside the United States. Alameda Research, founded by Sam Bankman-Fried, was headquartered in Hong Kong. However, Bankman-Fried and its key executives, including CEO Caroline Ellison, are US nationals, and the US, unlike most countries, imposes uses a taxation-by-citizenship regime, making US nationals liable for their incomes worldwide despite their tx residency.
</p><p>For partnership entities, US taxes are passed through partners and taxed at individual levels, which is the case of Alameda Research.
</p><p>"Federal law prevents the IRS from confirming or denying any correspondence with regard to any taxpayer case," an IRS spokesperson said in a media statement.
</p><p>FTX, Alameda Research, and over 134 other affiliates filed for bankruptcy in the US last November after Bankman-Fried's shady business practices surfaced. Bankman-Fried, <a href="https://www.financemagnates.com/cryptocurrency/news/ftxs-sam-bankman-fried-pleads-not-guilty-to-us-criminal-charges/">facing an array of criminal and civil charges</a>, recently moved to court with a motion to drop the criminal allegations ahead of the trial pending on October 2, while top executives of his FTX-Alameda empire pled guilty to their charges.
</p>
This article was written by Arnab Shome at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...krupt-ftx/
<p>The US Department of Treasury and Internal Revenue Service (IRS) have filed 45 claims, totaling about $44 million, against bankrupt crypto exchange FTX and other affiliates.
</p><p>US Tax Claims against FTX
</p><p>The <a href="https://www.financemagnates.com/terms/b/bankruptcy/" class="terms__main-term" id="41b3ef0d-d805-441d-8443-121890264e94">bankruptcy</a> filings on April 27 and 28 show that the US tax agency's claims against several FTX companies, which includes Bahamas-registered FTX Trading Ltd.; Alameda Research; West Realm Shires, which operated the US affiliate of FTX; Ledger Holdings, which is the parent of LedgerX and LedgerPrime; Blockfolio; and a few others. FTX recently <a href="https://www.financemagnates.com/cryptocurrency/ftx-sells-ledgerx-for-50-million/">sold LedgerX for $50 million</a>.
</p><p>The initial bankruptcy filings of FTX estimated its assets to be between $1 billion and $10 billion. However, the FTX bankruptcy attorneys have already <a href="https://www.financemagnates.com/cryptocurrency/fallen-ftx-exchange-recovers-over-7-billion-thanks-to-surging-btc/">recovered $7.3 billion in assets</a>, meaning the bankrupt empire's liabilities are much higher than its assets.
</p><p>The largest claims of the US Tax Department are against Alameda Research LLC, with two individual claims of $20.4 billion and $7.9 billion, and another two claims against Alameda Research Holdings Inc., totaling $9.5 billion.
</p><p>The $20.4 billion claim is against the company's partnership and payroll taxes due. These claims are labeled as 'administrative priority,' meaning they can supersede the claims of <a href="https://www.financemagnates.com/cryptocurrency/media-giants-ask-court-to-release-details-of-9m-ftx-customers/">other unsecured creditors</a> during the bankruptcy process.
</p><p>The Complicated US Tax Regime
</p><p><a href="https://www.financemagnates.com/tag/ftx/">FTX </a>primarily operated from outside the United States. Alameda Research, founded by Sam Bankman-Fried, was headquartered in Hong Kong. However, Bankman-Fried and its key executives, including CEO Caroline Ellison, are US nationals, and the US, unlike most countries, imposes uses a taxation-by-citizenship regime, making US nationals liable for their incomes worldwide despite their tx residency.
</p><p>For partnership entities, US taxes are passed through partners and taxed at individual levels, which is the case of Alameda Research.
</p><p>"Federal law prevents the IRS from confirming or denying any correspondence with regard to any taxpayer case," an IRS spokesperson said in a media statement.
</p><p>FTX, Alameda Research, and over 134 other affiliates filed for bankruptcy in the US last November after Bankman-Fried's shady business practices surfaced. Bankman-Fried, <a href="https://www.financemagnates.com/cryptocurrency/news/ftxs-sam-bankman-fried-pleads-not-guilty-to-us-criminal-charges/">facing an array of criminal and civil charges</a>, recently moved to court with a motion to drop the criminal allegations ahead of the trial pending on October 2, while top executives of his FTX-Alameda empire pled guilty to their charges.
</p>
This article was written by Arnab Shome at www.financemagnates.com.
https://www.financemagnates.com//cryptoc...krupt-ftx/