This article applies to US customers only.
Many investors want to know their options for claiming tax write-offs for funds locked on bankrupt platforms like Voyager, FTX, BlockFi, and Celsius. This article points you to the right resources — CoinTracker doesn't provide tax advice, so the specifics come from a tax expert.
Why it matters to get this right
Tax write-offs can save thousands of dollars, but handling them incorrectly may increase your chances of an IRS audit or lead to undesired results. The rules around when and how to claim these deductions are nuanced.
For the details, see CoinTracker's blog post by a tax expert on crypto tax write-offs. If you received a creditor distribution from Celsius specifically, see the blog post on reporting Celsius bankruptcy payments for information on how to account for it.
Stay informed as cases progress
Bankruptcy proceedings can take years. New developments — court rulings, settlements, creditor distributions — may affect your deduction options, timing, and amounts. Check in on the case each filing year that the bankruptcy is still active.
Track the affected transactions in CoinTracker
Get personalized advice
Bankruptcy tax treatment depends on the facts of your situation. For personalized advice on how to account for a bankruptcy or a creditor distribution, consult a tax professional.