the article seems to reach a different conclusion regarding Ponzi losses as long as the objective was to earn a profit. It seems to conclude that such a loss does not have to be in a federally declared disaster area.
https://www.journalofaccountancy.com/issues/2025/jul/deductibility-of-theft-losses-for-victims-of-ce...
furthermore pub 547
Note that the personal-use property limitation for tax
years 2018 through 2025 does not apply to losses on in
come-producing property, such as losses from Ponzi-type
investment schemes
