topic BlockFi Bankruptcy in Get your taxes done using TurboTax

BlockFi Bankruptcy

nbizic56 — Tue, 24 Feb 2026 08:04:06 GMT

If I had assets with BlockFi which declared bankruptcy and locked my assets for a period of time before I was able to recover them, am I able to claim any sort of loss based on the opportunity cost of the time it was locked.

For example, if I purchased the crypto for $1,000.00 but then it became locked during the bankruptcy and inaccessible, and the price went up to $2,000.00 during this period, but by the time I was able to control my assets again it was $1,000.00, which I now control and still own, is there any tax claim or write off in this case based on the opportunity cost based on the banktruptcy?

Re: BlockFi Bankruptcy

ClarissaA1 — Wed, 15 Nov 2023 18:50:18 GMT

Sorry to be the bearer of bad news, but there is no tax write off for the potential lost gains while your funds were inaccessible during a crypto exchange's bankruptcy proceeding. You didn't actually realize a gain or loss to have a taxable event when you were unable to access your funds.

This is true whether it's a situation such as you proposed where you could have realized a gain on your crypto, but for the bankruptcy keeping your currencies frozen, or if you would have liquidated your funds and taken cash out to reinvest in another asset.