FTX Bankruptcy Judge Takes Step to Shorten Timeline for Customers' Recoveries
Summary
A federal judge is looking to expedite the resolution of a dispute between FTX, a failed crypto firm, and its largest creditor, the IRS. The IRS alleges FTX owes $24 billion in unpaid taxes, a claim that must be resolved before customers can recover their losses from the firm. The U.S. Judge John Dorsey has scheduled a hearing for early next year to determine the extent of FTX's debt to the IRS. While the IRS is typically among the first creditors to receive payouts in corporate bankruptcy cases, Judge Dorsey cautioned the IRS to moderate their expectations of a multi-billion-dollar recovery.
