According to a court filing revealed on Wednesday, the US government’s claims against the bankrupt crypto exchange FTX could reach $5 billion. However, FTX customers, lenders, and other creditors will be paid first.
The order of payouts is specified in the filing: Alameda lenders and FTX clients will receive payment after administrative expenses. The remaining money will then be deposited into a Civil Remission Fund to assist debtors who have seen an increase in the value of their cryptocurrency holdings, with a portion going towards US taxes.
This occurs following the bankruptcy filing of FTX in November 2022 and the fraud conviction of Sam Bankman-Fried, the company’s former CEO.
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