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  • Loss or theft of crypto assets

    Evidence you'll need in order to claim a capital loss if your crypto asset is lost or stolen.

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    Work out if crypto asset is lost or stolen

    If your crypto asset is lost or stolen, you can claim a capital loss if you can provide evidence of ownership.

    You need to work out whether:

    • the crypto asset is lost
    • you have lost evidence of your ownership
    • you have lost access to the crypto asset.

    Generally, where you can recover an item it is not lost. For example, you can recover crypto assets by extracting data from a hard drive. However, you can't recover a lost private key.

    If you can't replace the item, then you can claim a capital loss, which you can use to reduce any capital gains.

    Lost private key

    If you lose your private key, you lose access to your crypto assets. To claim a capital loss, you will need to be able to provide the following evidence to show your ownership:

    • the date you acquired the private key
    • the date you lost the private key
    • the digital wallet address for the private key
    • the cost to acquire the crypto assets in the digital wallet
    • the value of the crypto assets in the digital wallet at the time the private key was lost
    • that the digital wallet was in your control (for example, you can link transactions to your identity)
    • that the hardware that stores the digital wallet is in your possession
    • the transactions from a digital currency exchange where you have a verified account or is linked to your identity.
    Last modified: 29 Jun 2022QC 69951