Recent court documents indicate that creditors’ claims on FTX’s digital assets will be based on the near-lowest crypto prices at the time of the disgraced exchange’s collapse in November 2022.
A recent disclosure statement shows that FTX’s lawyers are proposing that digital asset claims will be calculated and processed by converting the value of the crypto into cash based on the exchange rate on November 11, 2022, the day on which the now ter defunct fair its Chapter began. 11 case.
At the time, crypto prices had plummeted due to the FTX turmoil and the related contagion spreading through the sector. For example, Bitcoin (BTC) traded for around $16,600 on November 14, 2022, up from $43,170 at the time of writing. Ethereum (ETH) was trading around $1,250, compared to $2,238 currently.
Earlier this month, FTX’s lawyers opposed efforts by the US Internal Revenue Service (IRS) to recover billions of dollars in unpaid taxes from the bankrupt crypto exchange, according to a report from Bloomberg.
The attorneys alleged in a lawsuit that the IRS’s demand for $24 billion in unpaid taxes would come at the expense of stock fraud victims.
FTX’s legal team has also reportedly argued that the bankrupt crypto exchange doesn’t owe taxes to the IRS because it repeatedly posted losses over its three-year lifespan.
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