FTX Evaluates Creditor Claims Tied to Digital Asset Prices Amid Exchange Collapse
Recent court documents reveal that FTX’s creditors will assess digital asset claims based on crypto prices near the exchange’s collapse in November 2022.
FTX’s lawyers propose calculating claims by converting crypto values to cash using the exchange rate on November 11th, 2022, the day the now-defunct platform initiated its Chapter 11 case. The disclosure highlights the impact of FTX’s turmoil, with Bitcoin trading at approximately $16,600 and Ethereum at around $1,250 during the collapse, significantly lower than their current values of $43,170 and $2,238, respectively.
FTX’s legal battles continue, as the legal team resists the U.S. Internal Revenue Service’s efforts to claim $24 billion in unpaid taxes, arguing that such demands would harm the exchange’s fraud victims. Additionally, FTX’s lawyers assert that the bankrupt exchange owes no taxes to the IRS, citing repeated losses over its three-year existence.
Clever Robot News Desk 20th December 2023
Related Article
