Hi @drazgo ,
When a Crypto platforms files for bankruptcy, your crypto assets might be frozen. While the bankruptcy court finalizes the distribution of assets (if any are available) , it is important you gather all your documents related to your crypto accounts ( CSV files, trade history, account balances, etc..) to have proof of value and cost of your crypto.
Once the the bankruptcy is settled and if your crypto (all or portion) is deemed worthless, then the losses are ordinary losses reported as miscellaneous itemized deductions but is not deductible for tax years 2018-2025 because of the Tax Cuts and Jobs Act of 2017.
Thank you!
