Saturday, February 4, 2023

Scammer Converted Crypto Then Stole Bitcoin. Taxable Event?

Good Morning, last year I was unfortunately scammed and lost a little over 2 bitcoin. The scammer gained access to my account and converted 1 Ethereum token to bitcoin and then sent all the bitcoin in my account to an unknown address. I purchased the Ethereum when it was trading at a little below $4,000 and at the time of the conversion it was close to $1,500. Can I report this as a loss on my tax return? The exchange shows my taxable events and this appears on that report even though it wasn’t authorized.

I understand that I can’t claim the full amount as a loss because theft losses are no longer permitted but is the conversion that occurred in my account under my name something I can report? In previous years I have reported and owed money on crypto conversions where I have had gains.

Thank you!


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