The IRS Wants $44B From Bankrupt FTX. How Is That Possible? - Ep. 491

Unchained

Laura Shin

News, Business News, Tech News

4.6 • 1.3K Ratings

🗓️ 12 May 2023

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

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Summary

News emerged this week that the U.S. Internal Revenue Service (IRS) placed $44 billion in claims on the FTX bankruptcy estate. Now creditors of the defunct crypto exchange are worried that the taxman is going to gobble up funds that would otherwise be used to make users partially whole. Wassielawyer, a lawyer specializing in restructuring and insolvency, joins the show to explain what’s going on, how that huge number is even possible, and why the so-called “trust argument” is not going to be the silver bullet that some FTX customers are dreaming of. Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform. Show highlights: whether the numbers of the IRS claim are even correct how these claims may affect all customers and unsecured creditors of FTX whether FTX CEO John Ray will fight the claims what the trust argument is and how it could potentially save (or not) FTX’s creditors in what currency the investments made by creditors would be returned why the Three Arrows Capital case differs from FTX and Mt. Gox why what FTX allegedly did is similar, but different, from what Celsius or Voyager did Thank you to our sponsors! Crypto.com Railgun DAO Stader Labs Guest Wassielawyer, a lawyer specializing in restructuring and insolvency Previous appearances on Unchained: Did the Bahamian Government Direct SBF and Gary Wang to Hack Why the Messy 3AC, Celsius, and Voyager Bankruptcies Will Drag on for Years Three Crypto Bankruptcies: 3AC, Celsius and Voyager. What Happens Now? Links CoinDesk: U.S. Internal Revenue Service Files Claims Worth $44 Billion Against FTX Bankruptcy MeatTC’s Twitter thread Wassie’s Twitter thread Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hi, everyone. Welcome to Unchained, your no-hype resource for all things crypto. I'm your host,
0:08.6	Laura Shin, other of the Cryptopians. I started covering crypto seven years ago, and as a senior
0:14.1	editor at Forbes was the first Meantry Meter Porter to cover cryptocurrency full-time. This is the
0:18.7	May 12, 2023 episode of Unchained. Ever wanted to use DeFi without being trapped?
0:25.0	Railgun is a leading DeFi privacy solution on Ethereum, BSC, Arbitram, and Polygon.
0:30.8	Shield your funds and use them privately in your favorite DeFi apps, while Railgun's
0:35.3	cutting-edge, zero-knowledge system encrypts your data from public view. Yes, that includes
0:40.5	Dextrating. Visit railgun.org or use the railway app at railway.xyz.
0:46.2	Stater Labs is a multi-chain liquid-sticking platform with 40k plus DeFi partnerships
0:50.9	across six chains. Soon they'll be coming to Ethereum with their LST-E-X. Visit
0:56.0	staterlabs.com slash eith to sign up for their eith-X alpha list. With the Crypto.com app,
1:01.6	you can buy, trade, and spend crypto in one place. Download and get $25 with the code Laura.
1:08.1	Link in the description.
1:10.7	This episode is brought to you by Seven Up Zero Sugar. Picture this. You're looking at the
1:16.4	camera rolling your phone. You see an old picture of you and your mates gritting hard into the
1:20.4	camera and you sit around a dinner table. The food and vibes were perfect. Infuse your joyful
1:26.0	moments with Seven Up. It brings up liftments to everyday moments of the food. With its refreshing
1:31.9	lemon and lime taste, it lifts you up. Seven Up. Taste that lifts you up. Grab a Seven Up Zero
1:38.2	Sugar today. Today's guest is Wassey Lawyer, a lawyer specializing in restructuring and
1:44.3	insolvency. Welcome, Wassey. Hi, it's good to be back.
1:49.8	Late Wednesday, CoinDesk reported that the IRS is claiming $44 billion in taxes on FTX and
1:56.4	Alameda, both of which are in bankruptcy. I see people commenting on how can that be when Alameda
	...

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