Hi @jscryptopia !
If you do receive a settlement statement from the bankruptcy proceedings you can calculate your capital loss/gain at that time. The cost basis is the original purchase price plus any transaction fees.
If the investment becomes completely worthless it would be a miscellaneous itemized deduction, which is currently disallowed under the Tax Cuts and Jobs Act.
Here is a good resource from the Taxpayer Advocate Service:
https://www.taxpayeradvocate.irs.gov/news/tas-tax-tip-when-can-you-deduct-digital-asset-investment-l...
Hope this helps!
Cindy
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