@CCnewlife988
I don't believe that losses on cryptocurrency held for personal use are deductible, although others have a different opinion.
Losses on cryptocurrency held for investment purposes are deductible on schedule D. You can enter the loss manually (under sales of stocks, bonds and other investments) if you don't have a statement you can import.
Theft due to a Ponzi scheme is also deductible by a different process, and applies to either an investment loss or personal loss. But it really needs to be theft, with an actual thief or thieves who stole the money, and not just a badly run failed business.
With a capital loss, you can deduct up to the amount of your capital gains plus $3000, if the loss is more than that, you carry it over to the future. With a Ponzi theft loss, you can deduct it all at once, but there is a deductible equal to 10% of your gross income. Ponzi losses are also somewhat tricky to calculate for example--if you invested $10,000 and they claimed your investment was worth $20,000 before they shut down, you didn't really lose $20,000, and you might have gotten some money back early, which makes it more complicated.
