FTX, a defunct crypto exchange, has reached an agreement with the Internal Revenue Service (IRS) to settle a substantial $24 billion tax claim amid its bankruptcy proceedings.

Under the terms of the settlement disclosed in a June 3 filing with the US Bankruptcy Court for the District of Delaware, FTX will pay the IRS a $200 million priority claim within 60 days of implementing its proposed restructuring plan.

Additionally, the IRS will receive a $685 million lower-priority claim, contingent on available funds after satisfying customers and other creditors. This settlement aims to streamline FTX's bankruptcy process, ensuring smoother customer repayments and resolving potential legal disputes with the IRS.