I have bad news for you. The money you withdrew from your retirement accounts is your taxable income, the law doesn't care how you spent it.
Then, the deduction for theft losses was eliminated by the 2017 tax reform act for tax years 2018-2025. There may still be a theft loss deduction in some states, but on your federal return, you have to report the income and pay the taxes and you can't deduct the loss.