Hey there, PoI readers! 🎉 Mochi here, your trusty tech and web3 guide, ready to serve up another piping hot batch of delectable digital news. From FTX's tentative $200 million settlement with the IRS and the impressive performance of U.S. spot Bitcoin ETFs to the plight of a detained Binance exec and Elon Musk's AI chip controversy, we've got a smorgasbord of stories to sink our teeth into. So, grab a seat at the PoI table and let's dig in! 📰

INTEL BRIEF

🟧 FTX and the IRS have reached a tentative $200 million settlement, subject to court approval, resolving a major hurdle in the FTX bankruptcy process.

🟧 U.S. spot Bitcoin ETFs recorded their second-highest joint net inflow day, with $886.6 million in inflows, led by Fidelity's Bitcoin fund.

🟧 U.S. politicians are urging President Biden to intervene and bring back Binance executive Tigran Gambaryan, who has been detained in Nigeria on charges of money laundering and tax evasion.

🟧 Elon Musk has denied claims that he told Nvidia to prioritize AI chips for X over Tesla, clarifying that Tesla had no immediate need for the chips.

FTX Settles $24 Billion Tax Dispute with IRS for $200 Million

FTX, a tentative agreement has been reached with its largest creditor, the United States Internal Revenue Service (IRS). The settlement, which is subject to court approval, resolves a whopping $24 billion tax dispute between the two parties.

Initially, the IRS claimed that FTX owed more than $44 billion in taxes, but this amount was later reduced. Under the proposed settlement, the IRS would receive $200 million as a priority tax claim, paid within 60 days of the court's approval of FTX's reorganization plan. Additionally, the tax authority will collect $685 million as a subordinated claim, which will be paid after customers and other creditors.

FTX argues that it shouldn't be taxed on funds misappropriated by its former CEO, Sam Bankman-Fried, and disagrees with the IRS' calculations for employment taxes related to salaries paid to Bankman-Fried and other executives. The exchange also claims to have valid deductions and losses that the IRS is wrongly disallowing due to lack of proper documentation.

Despite these disagreements, FTX believes that settling with the IRS reduces litigation risk and increases certainty regarding creditor and customer recovery. The exchange recently proposed a new plan to repay creditors, aiming to fully reimburse all claims plus some additional compensation for those holding claims below $50,000.

As the FTX bankruptcy saga continues, this settlement marks a significant step forward in resolving the complex legal and financial issues surrounding the once-prominent crypto exchange. The crypto community eagerly awaits the court's decision on the proposed settlement and its impact on the broader industry.

FTX reaches a $200 million settlement with the IRS, resolving a $24 billion tax dispute.

The settlement is subject to court approval and covers all tax claims until Oct. 31, 2022.

FTX believes the settlement reduces litigation risk and increases certainty for creditor and customer recovery.

Bitcoin ETFs Roar with $887M Inflows, Proving Critics Wrong

U.S.-based spot Bitcoin exchange-traded funds (ETFs) witnessed their second-best-ever joint net inflow day, raking in a whopping $886.6 million, according to preliminary data. The Fidelity Wise Origin Bitcoin Fund (FBTC) led the charge with $378.7 million in net inflows, followed closely by BlackRock's iShares Bitcoin Trust (IBIT) with $274.4 million.

This impressive performance comes hot on the heels of the record-breaking $1.04 billion in net inflows seen on March 12, just a day before Bitcoin hit its all-time high of $73,679. The recent surge in demand for Bitcoin ETFs has left critics scratching their heads, as they had previously claimed that all interested investors had already bought in.

ETF Store president Nate Geraci took to X (formerly Twitter) to call out these naysayers, quipping, "I was told several months ago that all of the 'degen retail' investors who wanted to buy had already done so [and] there was nobody left. How can this be?"

Surprisingly, even the Grayscale Bitcoin Trust (GBTC), which has seen over $17.8 billion in net outflows since converting from a closed-end fund to a spot ETF in January, experienced a rare inflow day of $28.2 million.

As Bitcoin continues to rally, currently trading at $71,000, the demand for these ETFs shows no signs of slowing down. The impressive performance of "The Ten" (the Bitcoin ETFs excluding Hashdex) has caught the attention of Bloomberg ETF analyst Eric Balchunas, who highlighted the "big-time flows all around today" on X.

With the bears thoroughly "rekt" and critics left to eat their words, the future looks bright for Bitcoin ETFs as investors continue to pour in, fueling the ongoing bull run in the crypto market.

U.S. spot Bitcoin ETFs saw $886.6 million in inflows on their second-best joint net inflow day.

Fidelity's Bitcoin fund led with $378.7 million in net inflows, followed by BlackRock's iShares Bitcoin Trust with $274.4 million.

The strong demand for Bitcoin ETFs comes as Bitcoin rallies to $71,000, proving critics wrong about investor interest.

U.S. Politicians Plead with Biden to Rescue Binance Exec Detained in Nigeria

In a desperate plea for help, 12 U.S. politicians have written to President Joe Biden, urging him to take immediate action to bring Binance employee Tigran Gambaryan home from Nigeria, where he has been held for over three months on charges of money laundering and tax evasion.

Gambaryan, who serves as Binance's head of financial crime compliance, traveled to Nigeria on Feb. 26 at the invitation of the Nigerian government to address the cryptocurrency exchange's compliance issues in the country. However, after two meetings that quickly turned hostile, Nigerian authorities detained Gambaryan, charging him with what the U.S. politicians describe as "baseless" crimes.

In their letter, the politicians expressed grave concern for Gambaryan's well-being, stating, "We fear for his life. Immediate action is essential to ensure his safety and preservice his life. We must act swiftly before it is too late."

The Binance executive is currently being held in Nigeria's "notorious" Kuje Prison, known for its harsh conditions, where he is "fighting for his life inside a prison cell designed to hold ISIS combatants." To make matters worse, Gambaryan has tested positive for malaria, and despite a court order to send him to a private hospital for treatment, Authorities have failed to comply.

The U.S. politicians believe that the charges against Gambaryan are part of a coercion tactic by Nigerian authorities to extort Binance. They are calling on the Special Presidential Envoy for Hostage Affairs to handle Gambaryan's case and bring him home safely.

Prior to his role at Binance, Gambaryan was a federal agent and worked at the Internal Revenue Service for ten years. His detention has raised serious concerns about the safety of U.S. citizens working abroad and the need for swift action when they find themselves in perilous situations.

12 U.S. politicians are urging President Biden to intervene and bring back Binance executive Tigran Gambaryan from Nigeria.

Gambaryan has been detained for over three months on charges of money laundering and tax evasion, which the politicians believe are baseless.

The politicians fear for Gambaryan's life and are calling for immediate action to ensure his safety and bring him home.

Musk Refutes Claims of Diverting Nvidia AI Chips from Tesla to X

Elon Musk, the billionaire industrialist, has set the record straight regarding recent allegations that he instructed Nvidia to prioritize artificial intelligence chips originally meant for Tesla and send them to his privately owned social media company, X. In response to a CNBC article claiming that Musk told Nvidia to divert 12,000 H100 chips from Tesla to X, the tech entrepreneur took to social media to deny the claims and provide clarification.

Musk stated that Tesla had no immediate need for the chips and that they would have "sat idle in a warehouse collecting dust" if they had been delivered to the electric vehicle manufacturer. He further added that "The south extension of Giga Texas [factory] is almost complete. This will house 50k H100s for FSD training," indicating that Tesla's infrastructure for AI development is well underway.

The CNBC article reportedly led to a 1% drop in Tesla shares early on June 4 and has allegedly exacerbated tensions between Musk and some Tesla investors who believe the CEO has conflicts of interest and may be overextending himself. Musk currently manages and owns a consortium of high-tech companies, both public and private, including Tesla, SpaceX, Neuralink, xAI, and X (formerly known as Twitter).

As a major figure in the artificial intelligence and brain-to-computer interface sectors, Musk's companies, such as xAI and Neuralink, are in direct competition with industry giants like OpenAI and Google. X recently began a slow rollout of the Grok chatbot as a "non-woke" alternative to OpenAI's ChatGPT, while Neuralink received FDA approval to begin human trials for its brain-to-computer interface technology.

Despite the allegations and concerns raised by some investors, Musk remains committed to pushing the boundaries of AI and advancing his various tech ventures.

Elon Musk has denied claims that he told Nvidia to prioritize AI chips for X over Tesla.

Musk clarified that Tesla had no immediate need for the chips and that the south extension of the Giga Texas factory will house 50,000 H100 chips for AI training.

The allegations have led to tensions between Musk and some Tesla investors, but the billionaire remains committed to advancing his various tech ventures.

Well, folks, that's all the tea I have to spill for now! 🍵 I hope this edition of PoI has left you feeling more informed, entertained, and perhaps even a little more optimistic about the future of crypto and tech. Remember, in this fast-paced world of innovation, it pays to stay on your toes and keep your finger on the pulse. 📈✨

Until next time, this is your favorite crypto connoisseur, Mochi, signing off with a virtual fist bump! 👊💥 Don't be shy—share your thoughts, questions, and wild predictions with the PoI crew. After all, every voice counts in this crazy, beautiful community of ours! 🗣️💕

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🍨📰 Catch you in the next issue! 📰🍨