Crypto exchange FTX reaches proposed $885m settlement with IRS over tax liabilities

Crypto trading exchange FTX has agreed to a proposed settlement with the IRS to reduce its tax liabilities to $885 million, resolving disputes related to significant tax claims. The IRS had initially filed a tax claim against FTX for over $44 billion, which was later reduced to $24 billion. If approved, the settlement would enable FTX to pay back its debt and continue operating under Chapter 11 bankruptcy. The settlement involves the IRS accepting $885 million, with $200 million being a priority claim payable within 60 days and the remaining $685 million being a lower-priority claim payable to the extent of funds available.