Celsius Pausing withdrawals and Chapter 11

It’s been month since Celsius paused withdrawals and there isn’t support thread about this?

So now that Celsius has filed for Chapter 11 protection, what do we do about tax reporting on our stolen assets? Do we keep the API active or should we delete it. Any help would be great…

First, it’s not stolen. It was all legal. Morally it’s the same as most banking. If you claim it as a loss, and later receive a small amount of compensation, then the compensation would have to be counted. Me personally…It’s safe to assume Celsius users are never seeing that money again. Can it be counted as a Capital Gains loss? That’s a pain because if you lost $50k and your W-2 salary is $50k, I think only $3,000 can be counted against “ordinary income” per year, and carried over indefinitely. If you’re in a 25% tax bracket, that only increases your tax-return (3k x 0.25) = $750. You really want to apply this loss to Capital Gains. (Dividends are NOT capital gains). Here’s the real question: if you owned Ethereum in Celsius and used their bankruptcy date as the date of loss… and you buy Ethereum through another exchange within 30 days… is that a “Wash”. I think it’s not a wash because your deal was actually with Celsius.