RS Files Claims Worth $44 Billion Against FTX and Affiliates in Bankruptcy Case

The United States Internal Revenue Service (IRS) has filed 45 claims worth almost $44 billion against FTX and its affiliated entities, according to recent bankruptcy filings. FTX is a bankrupt crypto exchange that includes companies like West Realm Shires, Ledger Holdings, and Blockfolio, among others.

The largest of these claims includes a $20.4 billion and a $7.9 billion claim against Alameda Research LLC, with two other claims totaling $9.5 billion against Alameda Research Holdings Inc. These claims are classified as “Admin Priority,” which means the IRS’ claims could take precedence over other creditors’ claims in a bankruptcy case.

The $20.4 billion claim against Alameda Research LLC is primarily due to partnership taxes. The IRS is claiming about $20 billion in partnership taxes, with the remaining amount of the claim including millions in withheld income taxes and payroll taxes.

FTX’s bankruptcy attorneys have located more than $5 billion in various assets during a hearing in January 2023. Initially, the company estimated it had between $1 billion and $10 billion in assets overall, but this figure has changed as management located additional funds in recent months.

The IRS spokesperson declined to comment on the case, stating that “Federal law prevents the IRS from confirming or denying any correspondence with regard to any taxpayer case.”

The IRS’ claims against FTX and its affiliated entities highlight the challenges facing the crypto industry, as regulatory bodies try to keep pace with the rapidly evolving space. The classification of the IRS’ claims as “Admin Priority” may cause other creditors to receive less than they are owed in a bankruptcy case. The outcome of the case will be closely watched by the crypto community, as it could set a precedent for future bankruptcies in the industry.