This answer will point you to clarify the different types of cryptocurrency thefts, whether it's a capital loss or a theft depending on the circumstances.
Understand that this is a complex subject and in a state of flux as is the bitcoin phenomenon. This answer culls portions of a blog that apply to you. I suggest further research for you to determine where your situation lies.
From https://steemit.com/money/@cryptotax/was-your-bitcoin-stolen-potential-tax-benefits-for-your-loss
Considerations:
Is it a theft or a capital loss?
"Generally, for U.S. income tax, a loss from the three schemes above could be a “theft loss” or a “capital loss”, depending on the circumstances.
For US tax purposes, “theft” generally means criminal appropriation of another’s property, including loss from swindling, false pretenses and guile (Revenue Ruling 2009-09). Generally, whether a theft occurred for tax purposes would be based on laws in the jurisdiction where the theft occurred and, and it occurred with criminal intent. A conviction is not required to determine a theft occurred (Revenue Ruling 2009-09).
A capital gain/loss is the loss on the disposition of a capital asset. A disposition/worthlessness of stock tradeable on the open market is a capital loss (not a theft loss), even it relates to fraudulent activities of the board of directors/officers (Revenue Ruling 2009-09, Revenue Ruling 77-17). A U.S. person’s loss from capital assets (after netting against gains) is limited to $3,000 per year (see section 1211 and 1212)."
If a theft, is the Loss
from
a Profit Activity or an Unrelated Activity?
"There are two general types of theft (non-capital) losses which are deductible as itemized deductions:
(a) Profit Activity - Losses incurred in a transaction entered into for profit (section 165(c)(2))
(b) Unrelated Activity- Losses not connected to a transaction entered into for profit (section 165(c)(3))"
The theft loss from an Unrelated Activity would have the same tax treatment as a tornado or other act of God. This would require Form 4684 (Casualties and Thefts) and is limited by floors and AGI.
"(a) The first $100 of loss is not deductible and
(b) The remaining loss is only deductible to the extent it exceeds 10% of the person’s adjusted gross income. For someone with a $25,000 in gross income, and a $5,000 Unrelated Theft loss, they would be able to deduct $2,400 ($5,000 loss, less $100 = $4,900; and 10% of $25,000 Gross Income is $2,500, meaning $4,900-$2,500 = $2,400 allowable loss)."
Situations:
Hacked Wallet
"For a hacked wallet, this would likely be treated as a theft loss as the BTC was literally stolen.
If the wallet was holding an investment in Bitcoin for purposes of generating profit, then the theft loss could be treated as a Profit Activity thus not subject to the $100/10% floors. However, if the wallet was primarily used for personal transactions unrelated to investing (i.e. purchases from Microsoft Store or Overstock, etc.), the IRS may treat this as an Unrelated Loss, subject to the $100/10% floors (explained above). A tax advisor should be consulted.
Initial Coin Offering
Unfortunately, worthless ICO tokens may be treated as capital losses (not theft losses), even more so if SEC has the intent to classify some of these tokens as securities. In a bitcoin for token exchange, the bitcoin was willingly given up by an investor; as opposed to literal theft due to hacking/Ponzi. A tax advisor should be consulted.
Ponzi Scheme
In Revenue Ruling 2009-09, a person opened an investment account with a supposed investment advisor/broker, and it turned out to be a Ponzi scheme. This transaction was treated as entered into for profit and thus not subject to the $100/10% floor limitation (explained above). A Ponzi scheme loss related to crypto products would seem to be a theft Loss from a Profit Activity, not subject to the $100/10% floors if the facts are similar to Revenue Ruling 2009-09. A tax advisor should be consulted."
