The value of the BTC and ETH when it was received is part of the return of investment to a creditor.
A January 31, 2024 press release states:
Celsius Network LLC (“Celsius” or the “Company”) announced today that it has successfully emerged from bankruptcy by completing the transactions under its confirmed plan of reorganization (the “Plan”). The Plan was overwhelmingly approved by approximately 98% of the Company’s account holders and confirmed by the Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) on November 9, 2023.
Return of investment to the creditors is addressed here.
The Plan includes the distribution of over $3 billion of cryptocurrency and fiat to Celsius’ creditors, and the creation of a new Bitcoin mining company—Ionic Digital, Inc.—which will be owned by Celsius’ creditors and will have its mining operations managed by Hut 8 Corp.
I do not know whether you agreed to participate in the bankruptcy court settlement. I do not know whether you have received all of the distributions in payment for your investment. I do not know whether you received all of the distributions in payment for your investment in 2024 or in other years.
The basic rule is that if the original investment was worth $2,000 and the full distribution of cryptocurrency, fiat and ownership of the new mining company totals $1,500, you would report a $500 capital loss.
If the original investment was worth $2,000 and the full distribution of cryptocurrency, fiat and ownership of the new mining company totals $2,500, you would report a $500 capital gain.
@Jimrowley83
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