Friday, March 8, 2019

Tax Help- Crypto lost on hacked exchange

I bought bitcoin November 2017 and sold around its peak on January 3rd 2018 or so, making back about 2 1/2x my money. I then transferred that money into a less reputable exchange (bitgrail) which basically stole my money and locked it up while the altcoin (nano) crashed. It’s still locked up and worth nearly nothing.

I’m okay with the stolen funds as i understood that as a risk, but I don’t want to pay taxes for the gains on bitcoin when all my money was lost almost immediately afterwards, due mostly to forces outside my control.

Is there a way to report those lost funds as a capital loss so to help offset the capital gains on bitcoin? There are currently a number of lawsuits in Italy based on this event that I could site and reference.

Thanks!


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