How to report Celsius Network Clawback Settlement Payment when not receiving any estate distributions

I had an account on the Celsius crypto exchange that went bankrupt in 2022. I was fortunate to have gotten out of Celsius before they closed down but then unfortunate to be sued for preference clawbacks. I eventually settled and made clawback settlement payment via wire in 2025. 

 

How do I report my loss for the settlement payment on my 2025 taxes (US)?