You should not use form 4684 for an investment loss. You should place it on schedule D and form 8949.
You will enter this as a sale of an investment. Enter 'Various' as the date of purchase (or an actual date if you bought all your cryptocurrency on the same day). Enter the full amount that you had invested in Celsius as the purchase price. Enter the date that you received partial payment as the sale date. Enter the value of the cryptocurrency that you received on that date as the sale price.
If the assets that you recovered were your actual assets then you need to adjust the cost basis to exclude those amounts. If they were replacement assets then they should be included as part of the payment that you received and have a basis going forward of their value on the date that you received them.
You will have a loss that you can use to offset any capital gains. You can only use $3000 of it against regular income each year if you don't have any capital gains to use it against. But it will carry forward for twenty years.
@alejandrocastro8
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