What are the Crypto Tax Implications for Investors From the FTX Collapse?

What about a personal casualty loss deduction? Personal casualty losses have been suspended until the end of 2025, according to 2018’s Tax Cuts and Jobs Act, unless the loss is related to a federally declared disaster. So, unless an FTX investor has lost access to their wallet forever because of a sudden or unexpected event occurring because of a declared disaster, or the FTX bankruptcy carries through to 2026 without resolution, a personal casualty loss is unlikely to be available.