Internal revenue service (irs) was involved in the ftx chapter 11 bankruptcy proceedings. deputy attorney general david hubbert filed notice for elisabeth bruce to replace warren benson in the proceedings, which occurred on thursday. additionally, sam bankman-fried, the ex-ceo of ftx, was arrested and charged with eight financial crimes. caroline ellison and gary wang, members of bankman-fried’s inner-circle, have already pleaded guilty and are cooperating with prosecutors.
Ftx bankruptcy proceedings occurred on november 11, 2020, and have been followed by a joint statement from the fdic, federal reserve, and office of the comptroller warning that crypto isn’t “safe and sound.” the white house has also called for regulation, while fielding questions about meetings between bankman-fried and president joe biden.
Fuller, taxbit’s director of government solutions, has reported that the irs has more than a passing interest in the case. brett fuller, an attorney with fifteen years of experience working at the irs, believes it’s possible, though unlikely, that the irs is attempting to gain access to the customer list held by ftx. the irs has also issued john doe summons to crypto firms coinbase, kraken, circle, and sfox in an effort to uncover potential tax evaders. john fuller, a partner at the law firm of mcdermott will & emery, suggested that the irs could also be attempting to gather data for tax compliance purposes.
