FTX and IRS reach settlement for approximately $885M

The FTX estate and the Internal Revenue Service proposed a settlement that would see the bankrupt exchange’s estate pay the government nearly $1 billion. 

The sum, which totals $885 million, is a far cry from the $24 billion originally sought by the IRS. 

As part of the proposed plan, the debtors will pay the IRS $200 million within 60 days of confirmation. The other $685 million will be paid “to the extent of funds available in accordance with the settlement.”

Meaning that the claim is on the lower priority list, and other claims will be paid out first. 

There’ll be a hearing on the motion held on June 25 before Judge John Dorsey, the judge overseeing the bankruptcy…

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