FTX Reaches $885 Million Settlement with IRS in Bankruptcy Case

The cryptocurrency exchange will pay $200 million upfront, with an additional $685 million on a lower priority basis, pending court approval.

The IRS initially sought $44 billion, later reduced to $24 billion, before settling on $885 million.
FTX will pay $200 million within 60 days of court approval, with the remaining $685 million dependent on available funds.
A hearing on the settlement is scheduled for June 25, 2024, before Judge John Dorsey.
FTX's reorganization plan aims to repay creditors and customers, with over 90% of assets expected to be returned by mid-2024.
The settlement helps avoid extensive litigation costs and provides a clear path forward for FTX's creditors.