BlockFi wallet is a potentially lost wallet. BlockFi has recently declared Chapter 11. I still have a relevant amount of crypto in this wallet.
I would like to know how to set it up as a lost wallet in 2022 tax report,
Best
Cristiano
Hello Cristiano,
Please make sure to connect with a professional tax accountant on this issue, as we cannot give you specific tax advice. I am unable to comment much on Blockfi’s situation.
That said, you can find our instructions on how to deal with closed wallets and exchanges here.
It’s not considered a “loss” until the bankruptcy is finalized. This is the same thing that Celsius, Voyager, and other services are going through.
Yes, that means you may have to pay taxes on any earnings, despite the possibility of never seeing the money.
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