Home web3.0 Will FTX pay heavy taxes on cash repayments? Creditors' lawyers demand repayment in cryptocurrency

Will FTX pay heavy taxes on cash repayments? Creditors' lawyers demand repayment in cryptocurrency

Jun 26, 2024 pm 03:48 PM
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Will FTX pay heavy taxes on cash repayments? Creditors lawyers demand repayment in cryptocurrency

Since its collapse in November 2022, the restructuring team of bankrupt Cryptocurrency exchange FTX has been actively raising funds to repay creditors. The restructuring team released the latest repayment plan last month, with an estimated amount owed of 112 However, after the assets are sold, there will be approximately US$14.5 billion to US$16.3 billion in cash available for compensation. Under the plan, some creditors can receive 142% of their losses, depending on the type of creditor's claim, and the vast majority of customers (those with holdings under $50,000) can receive about 118% of their cash losses. The loss compensation is calculated based on the dollar value of the platform funds on the day FTX exercises Chapter 11 of the Bankruptcy Law, and is repaid in the form of cash. Therefore, unless the assets placed by the user in FTX are stable coins, it is actually still a big loss (BTC was one dollar at the time) Only $17,000).

FTX Reorganization Team Will Vote U.S. Bankruptcy Judge John Dorsey held a hearing on the disclosure statement and voting procedures on Tuesday. Attorney Andrew Dietderich, who represented FTX in the bankruptcy proceedings, said that the repayment plan was basically agreed upon by both parties, and the restructuring team contacted There were no objections from any of the major stakeholders, so FTX plans to seek a vote from creditors to obtain creditor feedback. However, the final result may still be dominated by the judge’s decision. Even if creditors object to the current compensation plan, it may not be overturned; and currently, it seems that the FTX liquidation team should have reached an agreement with relevant major stakeholders and is confident that it can Win the vote. Lawyers for

creditors demand repayment in the form of cryptocurrency. David Adler, a lawyer representing three creditors, said that the disclosure statement was "grossly inadequate" and disputed that the creditors were paid in cash instead of cryptocurrency. David Adler pointed out that his clients generally have a strong desire to receive compensation in the form of cryptocurrency. Otherwise, according to US tax laws, if creditors receive compensation in cash instead of cryptocurrencyin kind, they will face huge taxes: I don’t quite understand. What are the logistical issues why this cannot be done (repayed in kind), but distributing it in kind rather than cash would save a lot of money for those who may face a tax bill. In this regard, John Dorsey said that this is an issue that needs to be confirmed and can be raised later. The next hearings will be held on July 17 and August 15.

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