Has anyone reported capital loss due to coin platform bankruptcy like Gemini, Voyager or Blockfi? Or do you still need to wait to report loss due to bankruptcy until they are completely liquidated and paid out and no longer available? (still getting emails about either payout or proceeding or just general emails from them in 2025). What is the right way to go about it?

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My understanding is there are two approaches.

You could take the loss/remaining loss now if you reasonably expect it to be a total loss. If you do get future proceeds they would be ordinary income.

Alternately, you could wait and each year you receive a payment take that payment over your claim amount and treat it like you sold that percentage of your holdings. This is better from a character perspective but you may end up waiting years to take the remaining losses.

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I think option 2 is technically the correct method

just sell it to unrelated party for $1 , much easier than proving out a worthless investment

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