Yes, for reporting of the Celsius Exchange Bankruptcy, the losses should be determined based on the cost basis and current value of any refunds. You should use Form 4684 for casualty and theft losses and Schedule D/Form 8949 for any capital losses to report these losses.
If you received a settlement (regardless how small) from the bankruptcy proceedings in exchange for your digital assets, this is considered a sale and you (or let TurboTax do it for you) should calculate your capital loss (or gain) on Form 8949 and report it on Schedule D (Form 1040) for the year you received any settlement.
thank you for the information
Where can I find the form 4684?
So I need to fill out 4 seperate forms?
-Form4684
-Form8949
-ScheduleD
-Form1040
Can I upload all of these on my turbotax return?
If you fill out the 4684 and the 8949 TurboTax will carry the relevant numbers to where you need them to be.
Go to the search box in the upper right of your TurboTax screen and type 'form 4684' there. Then click the 'jump to' link that appears and it will take you to the disaster loss form.