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Losses in crypto investments

Last updated 16 October 2023

Over the last few financial years we have seen some instances of SMSF trustees losing their crypto asset investments.

These losses have been caused by:

  • crypto scams, where trustees were conned into investing their superannuation benefits in a fake crypto exchange
  • theft, where fraudsters would hack into trustees crypto accounts and steal all their crypto
  • collapsed crypto trading platforms, many of whom were based overseas and
  • lost passwords resulting in trustees being locked out of their crypto account and being unable to access their crypto.

Trustees thinking of investing in crypto need to be aware of the ways that crypto can be lost, including via scams and how they can avoid them. ACCC's scamwatchExternal Link and the MoneySmart section on ASIC's website has some useful information on how to spot scams, including crypto scamsExternal Link and what to do if you've been scammedExternal Link.

Many crypto assets are not commonly considered to be financial products. This means the platform where you buy and sell crypto may not be regulated by ASIC. So you may not be protected if the platform fails or is hacked. When a crypto platform fails you will most likely lose all of your crypto.

Investing in crypto can be complex and risky so we recommend trustees seek financial advice before investing and read both MoneySmartExternal Link and the our SMSF investing in crypto assets page.

You can also check out our short Crypto myth busting videos:

Looking for the latest news for SMSFs? – You can stay up to date by visiting our SMSF newsroom and subscribingExternal Link to our monthly SMSF newsletter.

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