It depends on whether your account is frozen in bankruptcy or whether you sold and had a recognized loss.
The IRS issued a chief counsel memorandum in January stating that a taxpayer cannot claim a loss if they still own cryptocurrency that has substantially declined in value because they have not abandoned or otherwise disposed of the cryptocurrency, and the cryptocurrency is not worthless because it still has value.
You’ll have to wait until you can access your account and close it out or the case is settled in U.S. Bankruptcy Court.
See Memorandum Number: 202302011.
@Dfery
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
