In November 2022, the cryptocurrency exchange FTX declared bankruptcy and many FTX users were unable to withdraw their assets from the exchange. Read our blog post for a recap of the events. If you're CoinTracker customer affected by the collapse of FTX, continue reading for what to expect.
Note: Throughout this article, FTX refers to any FTX properties (FTX.US, FTX apps, etc.).
Do I need to keep my FTX transactions on CoinTracker?
- Yes. Even if you cannot access or withdraw these assets, CoinTracker recommends leaving the transaction history preserved on CoinTracker to ensure the accuracy of future tax calculations.
- We also recommend downloading a backup CSV of your FTX transaction history (in CoinTracker) for your records.
Is there a security issue with leaving FTX connected to CoinTracker via an API?
- As we mentioned in this blog post, we recommend not accessing FTX apps or websites until it is known to be safe to do so.
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That said, leaving FTX connected to CoinTracker is safe. We have severed all API connections between FTX and CoinTracker so that no data is moving between the two websites. We recommend leaving the transactions as they are to help with any future tax calculations.
- (Note: if you need to add a manual transaction to the FTX wallet/exchange on CoinTracker, the manual transaction will not be reflected on the Performance or Dashboard pages. However, it will be included in tax calculations and on tax reports.).
I was able to withdraw all of my assets held on FTX—do I need to do anything else?
- If you were able to move or withdraw your assets off of FTX before the bankruptcy, we still recommend leaving the FTX transactions in CoinTracker to preserve your transaction history.
- We recommend downloading a backup of this transaction history.
- We also recommend that you monitor the FTX bankruptcy proceedings as they unfold to see if you are eligible for compensation. We will update this help document with a reliable source of the proceedings if and when we can.
What should I do if I can no longer retrieve my FTX transaction history?
- CoinTracker requires a complete transaction history to accurately calculate taxes. If you cannot access your FTX transaction history (and therefore can’t upload it to CoinTracker), we recommend consulting a tax professional to determine the best steps for your particular case.
- If your FTX history is visible on CoinTracker, we recommend downloading a backup CSV of your FTX transaction history (in CoinTracker) for your records.
I have a CSV from FTX of my transaction history, how do I upload it to CoinTracker?
- We created this help article to walk through converting and uploading the CSV file to CoinTracker.
Should I write off my assets held on FTX as a loss?
- CoinTracker recommends waiting to see what happens with the bankruptcy settlement of FTX before recording a loss on affected assets, as users could possibly receive settlement money or a portion of their funds back. In other words, we recommend not writing these assets off as losses until more information is available.
- If you choose to report the assets as a write-off in the current tax year, you will need to report any future settlement compensation as income.
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As an example:
- User A reports $10,000 loss for FTX assets on their 2022 tax return. In 2025 it’s decided that affected FTX users can recover some funds, and User A recovers $3,000. They must report $3,000 as income on their 2025 return.
- User B also had $10,000 in assets on FTX, but waited until the settlement and received $3,000 in 2025. They would report a loss of $7,000 ($10,000-$3,000) on their 2025 return.
- CoinTracker recommends doing what User B did.
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For more information: CoinTracker’s tax department created this extensive blog post about tax write offs.
- Apart from regular capital losses, you must be extremely cautious when taking less frequently used write-offs such as nonbusiness bad debt, casualty losses, theft losses, worthless security deductions, and abandonment losses. If you don’t handle them correctly, you will definitely increase your chances of being audited.
I’d like to report my FTX assets as lost/stolen in the current tax year, how do I do that in CoinTracker?
- It is CoinTracker’s view that assets on FTX have not been lost or stolen. FTX froze withdrawals and then filed for bankruptcy. We don't recommend using the Mark as lost tag for frozen FTX assets at this time.
- If you do choose this path, you can follow the guidance in this help article to record these losses in CoinTracker.
Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.