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New Member
posted Feb 9, 2025 5:22:00 AM

Can I report losses if I was a victim of a rugpull in cryptocurrency?

I put a substantial sum of money into a project and the owner/team locked liquidity so I couldn't sell. Then removed all liquidity collapsing the entire project, thus taking my initial funds plus and unrealized gains

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1 Replies
Expert Alumni
Feb 10, 2025 5:24:28 PM

Unfortunately, a loss due to scam is not tax deductible. If you exchange went out of business, you may qualify for a capital loss.

See: What To Know About Cryptocurrency and Scams - FTC