No; typically, you can't deduct losses for lost or stolen crypto on your return. The IRS states two types of losses exist for capital assets:
- casualty losses and
- theft losses.
In either case, you can’t deduct these losses to offset your gains. Due to tax reform laws going into effect in 2018, most all casualty and theft losses aren’t deductible between 2018 and 2025. In the future, taxpayers may be able to benefit from this deduction if they itemize their deductions instead of claiming the Standard Deduction.
See Your Crypto Tax Guide.