The United States Internal Revenue Service (IRS) has filed claims worth $44 billion against FTX as part of the exchange's ongoing bankruptcy proceedings.
IRS Wants $44 Billion from FTX
The United States Internal Revenue Service (IRS) has filed claims worth $44 billion against FTX as part of the exchange's ongoing bankruptcy proceedings. The claims come after the IRS launched an investigation into FTX's tax reporting practices, alleging that the exchange failed to report over $20 billion in cryptocurrency transactions between 2019 and 2022. The IRS claims that FTX's failure to properly report these transactions resulted in the loss of billions of dollars in tax revenue.
FTX, which was founded in 2019, became one of the world's largest cryptocurrency exchanges in a short period of time, with over $1 trillion in trading volume in 2022 alone. The IRS claims against FTX highlight the regulatory challenges facing the cryptocurrency industry, as governments seek to enforce tax laws and prevent money laundering and other illicit activities. The outcome of FTX's bankruptcy proceedings will be closely watched by both the crypto industry and regulators, as it could set a precedent for future cases involving cryptocurrency exchanges and tax reporting.