The agreement, which is subject to a court approval, resolves a major hurdle for FTX bankruptcy process.
Bankrupt crypto exchange FTX reached a tentative agreement with its largest creditor, the United States Internal Revenue Service (IRS).
According to a June 3 filing, the exchange and the IRS agreed to settle a $24 billion tax dispute. The IRS initially claimed FTX owed more than $44 billion in taxes, but the amount was later reduced. The settlement depends on the court’s approval of FTX’s reorganization plan.
Under the settlement, the IRS would agree to resolve its $24 billion claim, receiving $200 million in priority tax claim paid within 60 days of the plan’s approval. The tax authority will also collect $685 million as a subordinated claim, which gets paid after customers and other creditors.