Unchained The IRS Wants $44B From Bankrupt FTX. How Is That Possible? - Ep. 491
May 12, 2023
Wassielawyer, a restructuring and insolvency specialist, dives into the $44 billion IRS claim against bankrupt FTX. He questions the accuracy of the tax estimates and discusses the implications for creditors hoping to recover funds. The episode highlights the dubious 'trust argument' and how it may—or may not—benefit FTX’s users. Comparisons are made between FTX and other crypto failures, such as Celsius and Mt. Gox, dissecting the legal complexities in cryptocurrency ownership and recovery.
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IRS Claim Calculation
- The IRS is claiming $44 billion in taxes from FTX and Alameda, likely overestimating due to lack of details.
- They're reclassifying employee/contractor arrangements and claiming back taxes.
Admin Priority and FTX/Alameda
- The IRS claims are filed as admin priority, meaning they're paid before unsecured creditors like FTX customers.
- FTX is an unsecured creditor of Alameda, further complicating customer recovery.
IRS Calculation Critique
- The IRS's calculations are questioned, as they reclassified employees as contractors and applied employer-side taxes.
- The claimed payroll taxes suggest an unusually high salary expense for FTX.
