Alameda’s $38 billion IRS bill, Do Kwon kicked in assets, Milady frenzy: Asia Express

IRS wants $38 billion in back taxes from Alameda

According to recent cases posted by the claims agent for bankrupt cryptocurrency exchange FTX, the US Internal Revenue Service (IRS) is pursuing claims totaling $44 billion from the bankruptcy of the exchange and related companies, including that of its sister Quant trading company Almeida. Including $38 billion against. Research. In a claim, the IRS assessed $20.4 billion in unpaid partnership and payroll taxes against Alameda Research LLC.

Founded in September 2017 by Sam Bankman-Fried and Tara McAuley with Caroline Ellison as CEO, Alameda was headquartered in Hong Kong and, at its peak, was executing $5 billion worth of transactions per day. Hong Kong does not tax capital gains. However, being US citizens, the founders and principal executives are required to pay taxes on their worldwide income regardless of where they live and the number of days they actually spend in the US each year, with US tax-based citizenship. Under a very unusual regime.

Partnership taxes reviewed by the IRS suggest that it believed the entity was operating under a partnership regime where, unlike corporations, profits are not taxed at the entity level, but are “passed through” to its partners. And then on to the individual level.

If the IRS prevails, it could mean bad news for creditors. According to the filing, the IRS is claiming unpaid taxes totaling $44 billion from FTX and related companies under Admin Priority. IRS claims will have priority over unsecured creditors, such as FTX’s one million users, during bankruptcy proceedings. Despite their best efforts, the trustees and law firm have only managed to recover $7.3 billion in assets from FTX and related entities.

An alleged $20.4 billion IRS claim against Alameda Research is circulating this week.  (Twitter)
An alleged $20.4 billion IRS claim against Alameda Research is circulating this week. (Twitter)

Milady NFTs and the Symbolic Craze

Sensing the fascination around meme tokens, on May 8, a group of self-organized developers created the LADYS token on Ethereum (ETH), basing their design on the popular anime nonfungible token (NFT) collection of the same name. does based. Token has no affiliation with Milady Mixer or Charlotte Fang, the creator of the Milady Collection.

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The developers stated that “94% of the tokens were sent to the Liquidity Pool (LP). LP tokens have been burned and the contract has been waived,” while the remaining 1% have been released to Milady NFT holders and will be available for future miles. 5% is set aside in the multisig wallet for K stone. In addition, the developers warned:

“$LADYS is a meme coin with no intrinsic value or expected financial returns. There is no formal team or roadmap. The coin is completely useless and is for entertainment purposes only.

However, it seems that investors thought otherwise. At the time of publication, each LADYS token is worth $0.0000001285 each, up 3.254% on the day. On May 10, US business mogul Elon Musk tweeted a meme depicting a Milady NFT, which inflates the average selling price of the collection:

On May 11, Asia-Pacific-focused exchanges such as Bybit, Bitget, MEXC Global, and Huobi all began listing Mime Token. At the time of publication, the market capitalization of Ladies has crossed $100 million with a trading volume of $245 million in the past 24 hours.

Milady NFT price after Musk's shill.  (open sea)
Milady NFT price after Musk’s shill. (open sea)

Du Quan’s Approach: From Bad to Worse

Last May, Terraform Labs co-founder Do Kwon, a South Korean billionaire, led the $40 billion Terra Luna and TerraUSD dual-token ecosystems. A year later, Kwon is behind bars in the Baltic nation of Montenegro, awaiting trial on charges of falsifying documents. Luna, his life’s work, now lies in ruins, while Quan, on top of his Montenegrin legal woes, is being extradited on charges of fraud by both South Korean and American prosecutors in connection with the collapse of Terra Luna.

Kwon’s actions really bother a lot of people. The disgraced South Korean entrepreneur suffered another blow on May 10, when South Korean Chief Justice Yun Chan-young froze 233.3 billion Korean won ($176 million) in Kwon’s personal assets.

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The ban extends to Do Kwon’s Galleria Foret apartment complex in Seoul, a new office block and the sale of a range of imported cars. The order also prohibits the alienation of Kwon’s financial assets, such as securities, bank deposits and cryptocurrencies stored in personal accounts on virtual currency exchanges. Several criminal proceedings are currently pending against Kwon in various jurisdictions.

Meanwhile, his lawyers have suggested he be released on bail of 400,000 euros or $437,000, which has yet to be decided by the court.

Co-founder of 3AC Score Jeet

There was once a wise Chinese sage who said, “If you can’t solve a problem, at least you can solve the person who raised it.”

On May 5, Singapore Judge Sandra Lui Ai Lin of the Protection from Harassment Court issued a restraining order against BitMEX co-founder Arthur Hayes. The ruling came at the request of lawyers representing Su Zhu, co-founder of Singaporean hedge fund Three Arrows Capital (3AC), which is facing bankruptcy with claims totaling $3.5 billion. Among other things, the restraining order prohibits Hayes, under penalty of fine and/or imprisonment, by the Singaporean authorities from:

“Using threatening, abusive or libelous words or conduct in any way, or making threatening, abusive or libelous communications, which causes the applicant to [Su Zhu] harassment, alarm or fear.

Hayes is one of the many creditors of 3AC who have a It is believed Personal claim of $6 million. But unlike his colleagues, who like to do stick Faced with official notices from the Bankruptcy Court of the British Virgin Islands regarding the recovery of funds (with mixed results), Hayes regularly writes on Twitter denouncing the behavior of the 3AC co-founders. a copy“Be warned. In response to an alleged fundraiser for Bahraini sovereign wealth fund by Zhu and his colleague Kyle Davis, I want my money.

Despite their financial woes, it appears that Zhu and Davis have largely recovered from the unpleasant experience. These days, Davis regularly shows off his culinary skills on social media, while Zhu shares his take on the world philosophy associated with 3AC’s demise.

Zhu Su Restraining Order Against BitMEX Co-Founder Arthur Hayes (Singapore Harassment Court Protection)
Zhu Su Restraining Order Against BitMEX Co-Founder Arthur Hayes (Singapore Harassment Court Protection)

xiyuan sun

Zhiyuan Sun is a reporter at Cointelegraph who focuses on technology-related news. He has many years of experience writing for major financial media such as The Motley Fool, and Seeking Alpha.

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