Will your losses to FTX be classified as capital losses or as a “theft loss” that involved a Ponzi scheme? Either way, you’ll probably win.
Justin Wilcox is a partner at the Connecticut accounting and advisory firm Fiondella, Milone & LaSaracina LLP (FML CPAs). He founded the firm’s cryptocurrency practice in 2018, providing tax and advisory services to Web3 organizations and crypto investors. He mines cryptocurrencies like DOGE and holds various cryptocurrencies and NFTs.