New FTX CEO Outlines How Much The Former Exchange Owes The U.S. Government

March 21, 2024 11:45 pm Comments

The interim CEO for the now-defunct crypto exchange FTX has outlined the total owed by the former exchange to the U.S. government.

According to sources, FTX owes anywhere between $3-5 billion in fines to the U.S. government. Blockworks revealed a portion of CEO John J. Ray’s letter to U.S. officials slamming Sam Bankman-Fried’s loss of customer funds:

“As the lead professional of a very large team who has spent over a year stewarding the estate from a metaphorical dumpster fire to a debtor-in-possession approaching a confirmed plan of reorganization that will return substantial value to creditors, I can assure the Court that each of these statements is categorically, callously and demonstrably false.”

FTX claims that it has recovered nearly $8 billion in customer assets since the bankruptcy recovery began taking place after the collapse of the exchange.

Other outlets are also widely reporting the total owed by the former FTX to the U.S. government to fall somewhere between $3-5 billion:

The Block explained:

However, it is important to note that in accordance with Chapter 11 priorities for the estate, FTX customers, Alameda Research lenders, administrative expenses, and non-governmental creditor claims will be paid out before any government and tax claims.

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