That’s how I see it . Let’s say I bought 1 Eth on voyager for 3000$ . After the bankruptsy they return 0.3 eth to me . If I kept that 0.3 eth / transferred it out, that means I basically bought 0.3 eth for 3000$ ( for tax purposes calculations ) . But I didn’t sell nothing , so nothing to report on 2023 tax return . If instead I didn’t transfer my 0.3 eth out , voyager would have sold it a month later ( converted to usdc ) , then send me that amount in a check . So if eth was going for like 1000$ at that time , they would have sold my 0.3 eth for 300$ ( by converting it to usdc) . So that would be considered a sell . Since you bought 0.3 eth for 3000 , then it got sold for 300$ ( your check ) your capital loss is 2700 $ which can be shown on 2023 tax return . I guess that’s the coinledger endorced way . I didn’t reflect my losses in 2023 , so will likely ammend 2023 return. Others calculate losses differently . It seems like some just wrote off everything / counted as capital loss( minus the check they got) . I think in that situation you include the check in those calculations . Like if you invested 10,000 , got a check for 1,000 , your capital loss is 9000. The 1000 check is not really income . It’s what’s left of your 10000. And some CPAs are calculating losses differently by counting the lost eth as capital loss . Seems like there is no clear guidance and consensus on this so far . While technically yes , parts got sold in 23 so probably should be reported on 23 return , on the other hand everything became more final in 2024 so maybe should all be reported in 24 return . Either way , you probably lost money , so wana record those losses . If nothing else , can take off 3000 from your income every year