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Internal Revenue Service (IRS) has imposed a $24 billion fine on the defunct crypto exchange FTX as the government is unable to provide any estimated figures of the fraud.
On November 30, the IRS filed tax allegations that had gone “unexplained” for months. The IRS then threatened to stall the Debtors’ progress and any disbursement to consumers and other creditors indefinitely, according to FTX in court.
Billy Markus And Elon Musk’s Reaction on IRS FTX Fine
Reacting to the whopping amount of tax due, Dogecoin creator Billy Markus has taken a dig into the IRS. In an X post, pointing towards IRS Billy stated that collecting taxes may take precedence over paying victims of frauds.
Additionally, Billy emphasized the apparent mismatch in priorities, implying that the system prioritizes getting the government’s part over reimbursing those who have incurred financial losses as a result of fraud.
Along with Billy, SpaceX CEO Elon Musk also showed his curiosity about the case. Musk who’s also a dogecoin proponent has commented “Wow” on the same post. Although it’s just a mere reaction, the comment is evident that the fine has gathered so many eyes.
Many X users along with the victims of the FTX collapse have commented on the post. Citing Billy as right, users want the IRS to return the exploited funds to users.
FTX went bankrupt in early November 2022. The reports revealed that an associated trading firm, Alameda Research, drew the majority of its worth from speculative cryptocurrency tokens.
Also Read: Grayscale Executives Update Investors About GBTC’s Approval As Spot Bitcoin ETF
IRS Vs FTX Till Now
According to the filing on Wednesday, the IRS has filed 47 pending claims against FTX. The filings estimate a total tax burden to be around $24 billion. Meanwhile, FTX’s advisers claim that the corporation not only has no tax liability but also has over $11 billion in net taxable losses.
The defunct crypto exchange has requested that the tax claims be valued at zero or an amount determined at trial. Otherwise, the majority of the company’s assets would have to be set aside for IRS claims, according to the corporation.
While the IRS records against FTX are very brief, the allegations say that the company owes a variety of taxes. It includes unemployment, payroll withholding, income, and partnership taxes.
The Department of Justice slapping Binance with a $4 billion fine is one of the largest penalties ever issued on a cryptocurrency exchange. If the IRS’s charges are found to be true, FTX’s $24 billion tax penalties will take the first place.
Also Read: Hashdex Submits Amended Bitcoin ETF Filing To US SEC: Bloomberg
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