New FTX CEO Outlines How Much The Former Exchange Owes The U.S. Government
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March 21, 2024 11:45 pm
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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:
In a court filing, the bankrupt cryptocurrency exchange FTX indicated that claims by the U.S. government could total between $3 billion and $5 billion. This update came from documents submitted to the United States District Court for the Southern District of New York. The fil… pic.twitter.com/X0COBDn8Np
— Crypto Forum (@Cryptoforum_N) March 22, 2024
The U.S. government's claims against the FTX exchange and its subsidiaries are estimated at $3 billion to $5 billion, and include tax levies and claims by government agencies.
— coinpaprika – crypto market data (@coinpaprika) March 21, 2024
Total U.S. government claims against FTX are expected to be between $3 and $5 billion https://t.co/6hvmKe6EsH
— Cointime (@Cointime_global) March 21, 2024
FTX's bankruptcy estate faces about $3 billion to $5 billion in U.S. government claims, and a court filing said FTX's customers and other non-government creditors would be first in line for payouts. pic.twitter.com/9ZxQYcszIj
— Anna 🇱🇷 (@sunflower_US1) March 21, 2024
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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