Crypto Scam Losses and Taxes — What the IRS Says and How to Claim Them
If you lost crypto to a scam — a rug pull, romance scam, exchange collapse, or Ponzi scheme — you may be able to deduct that loss on your federal tax return. The rules are specific, the documentation requirements are real, and the process takes work. But the deduction is legitimate.
Scam situations we handle:
- Rug pulls — IRC Section 165 theft loss treatment
- Exchange collapses — FTX, Celsius, BlockFi, Voyager
- Pig butchering and romance scams — confidential consultations available
- Ponzi schemes — IRS safe harbor under Rev. Proc. 2009-20
- Form 4684 preparation and amended return filing
- IRS audit defense if the deduction is later examined
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Book a confidential consultation to discuss your situation.