Celsius Bankruptcy Deduction (Crypto)

Ultimate1
Ultimate1 Member Posts: 1 Newcomer
in Live Q/A Event

I had Bitcoin and Ethereum on Celsius earning a yield when they went bankrupt. I have received 43% back in 2024, it is unclear if there will be additional repayments. Am I able to claim a loss on the remaining 57% of my crypto that I had in Celsius?

Tagged:
· Share on Twitter

Answers

  • DennisR
    DennisR FreeTaxUSA Agent Posts: 17

    There are two general schools of thought when it comes to crypto losses due to bankruptcy. Taxpayers can either claim the lost crypto as investment loss and give up the rights to the assets or they can wait until the bankruptcy settlements are solidified. Until the things are 100% determined, it is hard to know what is permanently lost and what isn't.

    · Share on Twitter

Categories