FTX has outlined its intended reorganization plan, which will categorize claimants of the bankrupt exchange into specific classes and pave the way for it to become operational as an offshore entity. However, a body representing FTX customers said it is “extremely disappointed” by the plan.
FTX’s Official Committee of Unsecured Creditors (UCC) said despite its repeated requests and previous promises from the team, it “did not have a single call or meeting” with FTX to discuss the plan. The UCC warned it would put forward its own plan for FTX customers to vote on if it continued to be ignored.
Meanwhile, the company has filed a motion in court to remove its Dubai unit from ongoing restructuring proceedings in the United States. In the filing, the crypto exchange noted that FTX Dubai is balance sheet solvent and, therefore, a voluntary “liquidation procedure in accordance with the laws of the United Arab Emirates would allow a timely distribution of the positive cash balance after payment of all outstanding liabilities and liquidation of all assets.“
IRS deems crypto staking reward taxable once received
U.S. crypto investors must report crypto staking rewards as gross income in the year it was received, according to a new ruling from the country’s top tax authority. Gross income includes income realized in any form, whether in money, property, services or staking rewards. The ruling applies to cash-method taxpayers who receive any crypto as remuneration for validating transactions on proof-of-stake blockchains and applies both when staking cryptocurrency directly and through a centralized crypto exchange.
U.S. Senators believe there are $50 billion of non-collected taxes on crypto
Senators Elizabeth Warren, Bernie Sanders, Bob Casey and Richard Blumenthal claim there is a “$50 billion crypto tax gap,” and that the Internal Revenue Service and U.S. Treasury risk missing out on roughly $1.5 billion in tax revenue for the 2024 financial year if a tax policy update is delayed. The senators are referring to new tax laws outlined in the Senate’s $1.2 trillion infrastructure bill passed in August 2021. The bill aimed to increase the tax reporting requirements for businesses acting as crypto brokers.
DOJ is concerned about a run on Binance in the case of fraud charges
The U.S. Department of Justice (DOJ) is reportedly considering charging cryptocurrency exchange Binance with fraud but is hesitating due to the potential costs to consumers. DOJ officials are concerned about an indictment against Binance causing a run on the exchange similar to what happened with FTX in November 2022. Officials are reportedly considering fines or non-prosecution agreements for Binance rather than criminal charges in an effort to reduce the harm to consumers.
Binance was already reportedly the target of a criminal probe in the U.S. for allegedly violating the country’s sanctions on Russia. The U.S. Securities and Exchange Commission also filed a lawsuit against the crypto exchange in June for allegedly offering unregistered securities and operating illegally. In March, the Commodity Futures Trading Commission targeted the exchange and its CEO, Changpeng “CZ” Zhao, for allegedly violating trading and derivatives regulations.
The defence secretary has said he is “angry inside” over the infected blood scandal ahead of a long-waited report into the decades-long injustice.
Grant Shapps told Sky News he agreed it had been one of the most “shameful failures” of government and said he was dismayed by the “lack of anybody taking responsibility”.
The findings of a public inquiry into the scandal, chaired by Sir Brian Langstaff, are due to be published on Monday.
From 1970 to the 1990s, tens of thousands of people were infected with contaminated blood through blood products or blood transfusions given via the NHS. People were infected with hepatitis or HIV – in some cases with both.
Mr Shapps told Sunday Morning with Trevor Phillips that the scandal was a “massive injustice which needs to be put right” and said the government would act on the report.
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Thousands of people died after being given infected blood
He said that while he was yet to see the report, he hoped it would finally allow families’ pain and loss to be acknowledged and for the government to properly respond.
Mr Shapps said he had spoken to relatives of several victims, including a couple who had lost their son, and said their stories made feel him “angry inside”.
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He added: “It just made me angry to know they had lost their son without anyone ever taking responsibility, so I think this is why this report tomorrow is very important.”
Successive governments have been blamed for failing to take responsibility and the current government has been accused of trying to delay compensation to victims after an inquiry was first set up by Theresa May in 2017.
It is estimated that the compensation bill could now exceed £10m.
The defence secretary admitted the process of delivering payouts to victims had gone on for “so long”.
He added: “This is a massive injustice which needs to be put right.
“And I know the government said we will. The report tomorrow, I think, will be the day for that family and others and I know the government will want to respond quickly.”
Asked whether Prime Minister Rishi Sunak would apologise to the victims, Mr Shapps said: “I don’t want to mislead because I don’t have special insight into that.”
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Billionaire Sir Jim Ratcliffe has told Sky News that Britain is ready for a change of government after scolding the Conservatives over their handling of the economy and immigration after Brexit.
While insisting his petrochemicals conglomerate INEOS is apolitical, Sir Jim backed Brexit and spent last weekend with Labour leader Sir Keir Starmer at Manchester United – the football club he now runs as minority owner.
“I’m sure Keir will do a very good job at running the country – I have no questions about that,” Sir Jim said in an exclusive interview.
“There’s no question that the Conservatives have had a good run,” he added. “I think most of the country probably feels it’s time for a change. And I sort of get that, really.”
Sir Jim was a prominent backer of leaving the European Union in the 2016 referendum but now has issues with how Brexit was delivered by Tory prime ministers.
“Brexit sort of unfortunately didn’t turn out as people anticipated because… Brexit was largely about immigration,” Sir Jim said.
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“That was the biggest component of that vote. People were getting fed up with the influx of the city of Southampton coming in every year. I think last year it was two times Southampton.
“I mean, no small island like the UK could cope with vast numbers of people coming into the UK.
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“I mean, it just overburdens the National Health Service, the traffic service, the police, everybody.
“The country was designed for 55 or 60 million people and we’ve got 70 million people and all the services break down as a consequence.
“That’s what Brexit was all about and nobody’s implemented that. They just keep talking about it. But nothing’s been done, which is why I think we’ll finish up with the change of government.”
Prime Minister Rishi Sunak has indicated an election is due this year but Monaco-based Sir Jim is unimpressed by the Conservatives’ handling of the economy.
“The UK does need to get a bit sharper on the business front,” he said. “I think the biggest objective for the government is to create growth in the economy.
“There’s two parts of the economy, there’s the services side of the economy and there’s the manufacturing side. And the manufacturing, unfortunately, has been sliding away now for the last 25 years.
“We were very similar in scale to Germany probably 25 years ago.
“But today we’re just a fraction of where Germany is and I think that isn’t healthy for the British economy… particularly when you think the north of England is very manufacturing based, and that talks to things like energy competitiveness, it talks to things like, why do you put an immensely high tax on the North Sea?
“That just disincentivises people from finding hydrocarbons in the North Sea, in energy.
“And what we need is competitive energy. So I mean, in America, in the energy world, in the oil and gas world, they just apply a corporation tax to the oil and gas companies, which is about 30%. And in the UK we’ve got this tax of 75% because we want to kill off the oil and gas companies.
“But if we don’t have competitive energy, we’re not going to have a healthy manufacturing industry. And that just makes no sense to me at all. No.”
‘We’re apolitical’
Asked about INEOS donating to Labour, Sir Jim replied: “We’re apolitical, INEOS.
“We just want a successful manufacturing sector in the UK and we’ve talked to the government about that. It’s pretty clear about our views.”
Sir Jim was keener to talk about the economy and politics than his role at struggling Manchester United, which he bought a 27.7% stake in from the American Glazer family in February – giving him an even higher business profile.
Push for stadium of the North
He is continuing to push for public funds to regenerate Old Trafford and the surrounding areas despite no apparent political support being forthcoming. Sir Keir was hosted at the stadium for a Premier League match last weekend just as heavy rain exposed the fragility of the ageing venue.
“There’s a very good case, in my view, for having a stadium of the North, which would serve the northern part of the country in that arena of football,” Sir Jim said. “If you look at the number of Champions League the North West has won, it’s 10. London has won two.
“And yet everybody from the North has to get down to London to watch a big football match. And there should be one [a large stadium] in the North, in my view.
“But it’s also important for the southern side of Manchester, you know, to regenerate.
“It’s the sort of second capital of the country where the Industrial Revolution began.
“But if you have a regeneration project, you need a nucleus or a regeneration project and having that world-class stadium there, I think would provide the impetus to regenerate that region.”