A previous trustee embezzled $1 million of corpus that was meant to be distributed tax-free to beneficiaries. Can future income be offset by the stolen amount?

Yes, the trustee went to prison and a new trustee was appointed. The trust continues to receive income. Currently the interest received is taxable to the beneficiaries on a K-1. But since the beneficiaries were deprived of future non-taxable distribution of corpus, it seems unfair that any trust interest income should be taxable to them. Future income will never make up for the stolen money. Is there a workaround?"