Latest

IRS Files Lawsuits Worth $44 Billion Against Bankrupt Crypto Exchange FTX

The Internal Revenue Service (IRS) has filed lawsuits worth nearly $44 billion against bankrupt cryptocurrency exchange FTX and its affiliates.

In total, the IRS has filed 45 lawsuits against companies, including West Realm Shires (the legal entity of FTX.US), Ledger Holdings (the parent company of LedgerX and LedgerPrime), Blockfolio and others.

The biggest lawsuits are for $20.4 billion and $7.9 billion filed against Alameda Research. Two more lawsuits totaling $9.5 billion have been filed against Alameda Research Holdings.

The claims are filed under the “administrator priority” classification, which may allow IRS claims to take precedence over the claims of other creditors in bankruptcy.

Earlier, Sam Bankman-Fried, founder of bankrupt cryptocurrency exchange FTX, asked the court to dismiss most of the criminal charges related to the site’s collapse.

The prosecutor’s office is expected to respond to Bankman-Fried’s motion by the end of the month.

In the meantime, FTX announced that it had postponed the process of selling its Japanese subsidiary to explore the possibility of reopening.

According to an official statement, FTX Japan is one of the few licensed crypto operators in Japan. The exchange has two important licenses to operate with a permit to exchange crypto-assets.