• Community
• Topics
cancel
Showing results for
Did you mean:
US En
• Community
• Topics
cancel
Showing results for
Did you mean:
##### Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

New Member

# My cryptocurrency exchange went bankrupt in 2022 and partially reimbursed in 2023. How do I claim remaining losses on my taxes from the initial investment?

I fell victim of the Voyager Cryptocurrency platform's Chapter 11 filing in 2022. All of my assets were froze. I got back about 35% of them in the form of crypto in july of 2023 ( voyager reimbursed them ). Some were paid directly in crypto, which I transferred to new exchanges ( this crytpo has not been 'sold' yet - so no losses can be claimed ), but some of the coins were first converted to cash by Voyager, and then I just received cash

Can I claim a loss on these such coins that were sold by voyager and converted to cash in 2023?

I would do so by examining my records ( very carefully - I can already feel the eye strain ) and calculating the cost basis of 35% of the initial investment that was sold ( only for the coins that were converted to cash ), let's call this number: CB_cash_coins. This variable represents the cost basis for the coins that were eventually converted into cash. (I have no idea how voyager's algorithm sells shares or coins (does it sell the first ones that were purchased first, the most recently purchased shares first, etc.,  - this effects the cost basis calculation)).

So I would subtract the amount I received in cash from these coins' conversion from CB_cash_coins. Lets call this Rcvd_cash_coins, representing the cash I got reimbursed for these coins

So this means my profit / loss would be = initial investment - reimbursement = CB_cash_coins - Rcvd_cash_coins = my_loss_2023_cash_coins

Does this math make sense to anyone? Am I doing this right?

As for the 35% of my initial investment which was recovered and sent to me in the form of crypto ( NOT cash ), which I did NOT sell, I transferred it to exchanges and kept it in crypto - these assets I can't claim any loss on because they have not been sold yet right?

Voyager is still technically battling it out right now in the courts for the other 65%, and seeing how much of that they can recover ( there is no way they will recover 100% of our investments ). So there WILL be a loss at some point in the future. I can't claim a loss for any of these investments right? Not until it is determined that there will be no more reimbursements?

FYI - here is what voyager said:

"Voyager cannot provide you with tax advice and the company’s reorganization raises certain tax complexities. While we cannot be entirely certain, we believe that (a) the company’s Chapter 11 Bankruptcy filing should not affect your tax obligations, and (b) because your crypto claim has not yet been adjudicated, it is our understanding that you likely cannot use the company’s bankruptcy to claim a loss with respect to any cryptocurrency you deposited on the Voyager platform. You are highly encouraged to obtain independent tax advice.

Best Regards,
Team Voyager"

I sincerely appreciate all the help. Taxes are a nightmare but I want to work to understand them. 🙂

x

## Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.