The US government’s claims against the assets of the collapsed FTX are expected to range from $3 billion to $5 billion, according to The Block, citing court documents.
The tax claims by the authorities are not yet fully determined. However, administrative expenses and claims from non-government creditors will be prioritized for payment.
The debtors have proposed that 100% of the “proceeds from restitution to the Federal District Court for the Southern District of New York (SDNY)” be directed to payments for investors and clients.
Following this, 25% of the company’s funds will be allocated to federal income tax claims, with the remaining portion used to settle claims by the US Commodity Futures Trading Commission and other government bodies.
The funds received by the authorities will be placed in a Civil Compensation Fund for payments to FTX clients and creditors whose cryptocurrency has appreciated since the filing.
The order of repayment will be as follows:
- Payment to SDNY in favor of FTX clients and Alameda creditors.
- Settlement of administrative expenses and tax obligations.
- Full compensation for non-government creditors.
- Payment of federal income tax.
- Payments into the Civil Compensation Fund.
In May 2023, the US Internal Revenue Service filed a series of claims against the bankrupt FTX and its subsidiaries totaling $44 billion.
In December, the exchange presented a revised reorganization plan. According to the document, assets will be valued at the rate on the bankruptcy filing date—November 11, 2022.
Later, the lending platform BlockFi, undergoing bankruptcy proceedings, reached a preliminary agreement to settle claims against FTX and Alameda for $874.5 million.