FTX’s lawyers are opposing efforts by the US Internal Revenue Service (IRS) to claim billions of dollars in unpaid taxes from the bankrupt crypto exchange, according to a report from Bloomberg.
According to the report, FTX attorneys said in a lawsuit that the IRS’s demand for $24 billion in unpaid taxes would come at the expense of fraud victims at the bankrupt crypto exchange unless the court rejects the tax collection agency’s bid.
Citing a lawsuit, Bloomberg says FTX’s lawyers have argued that the bankrupt crypto exchange doesn’t owe taxes to the IRS because it has suffered repeated losses over its three-year lifespan. The lawyers also claim that any monies FTX would have to pay to the IRS would harm victims of the bankrupt crypto exchange.
According to Bloomberg, the IRS and the FTX will battle in court this week to determine how much of the former’s claim is legitimate. While FTX is reportedly seeking a quick timeline to estimate the IRS’s claim, the tax collection agency says the audit of the bankrupt crypto exchange is ongoing and therefore it is inappropriate to ask the court to estimate FTX’s tax liabilities.
Bloomberg also says that the US government has revealed in a lawsuit that it will reclassify part of the $24 billion claim, a move that will likely reduce the final amount.
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