FTX is expected to face claims of $3 to $5 billion

Jafar224

March 21st news: According to a report by The Block, based on court documents filed on Wednesday, the total amount of claims against the bankrupt cryptocurrency exchange FTX by the US government is estimated to be between $30 to $50 billion. The specific amount may vary and negotiations are underway with relevant authorities.

The documents submitted to the United States District Court for the Southern District of New York state that the total amount of US tax claims is still uncertain. However, once all government agency and tax claims are paid, the remaining proceeds can be used to distribute to shareholders. It is important to note, however, that under Chapter 11 bankruptcy property priorities, claims from FTX clients, creditors of Alameda Research, administrative expenses, and non-government agency creditors will be paid before any government agency and tax claims.

According to the court documents, the debtors propose to distribute 100% of "SNDY Relief Proceeds" – funds or assets returned to the FTX bankruptcy estate as part of the relief process by the US Attorney's Office for the Southern District of New York or other government agencies – to FTX.com clients and Alameda creditors, including settlements with BlockFi. The documents indicate that, excluding administrative expenses and non-government agency creditors, 25% of the distributable value will be used to pay claims for US federal income tax, while the remaining portion will be used to pay claims from the Commodity Futures Trading Commission and other government agencies.

Kapil334

There are indeed a lot of claims for this.

Ritu13

This is going to cost quite a bit of money too.

Yamini003

The US government is claiming rather than penalizing?