Solana-hacked crypto could be claimed as a tax loss
Solana- Hacked
Modified Date:- Published Date:-Categories: Cryptocurrency
Solana-hackedcrypto could be claimed as a tax loss
For unlucky crypto investors looking to turn lemons into lemonade itturns out that digital assets lost during an exploit or hack can potentially beclaimed as a tax loss, provided you live in the right country. Followingthe news that more than 8,000 Solana wallets had been compromised and that anestimated $8 million dollars in crypto had been stolen due to a security breachin Web3 wallet provider Slopes network, this may be some much-neededconsolation.
Shane Brunet, CEO of Australia-based Crypto Tax Calculator, confirmedthat crypto lost through hacks or exploits can be declared as loss for taxpurposes in some jurisdictions. "Many countries haveprovisions to allow this type of tax deduction.
However, you should work closely with a local taxprofessional and make sure you have sufficient proof of damages."Cointelegraph's tax chief Danny Talwar confirmed this with Cointelegraph, butinsisted that in Australia, someone has to do this. Must show proof that thelost crypto was in their control at the time of the theft.
For those living in the United Kingdom and Canada, things area bit more complicated but claiming a tax loss is possible if investors arewilling to go through the unique steps set by each country's taxation office. Nearly$2.6 billion of digital assets have been lost from hackers and nefarious actorsthis year alone, with cross-chain bridge attacks accounting for 69% of thetotal losses.
The value of an otherwise volatile asset is protected by law in some countries. If you live in one of those countries, or if you have crypto lost in a cryptocurrency exchange exploit or hack, you may be able to claim your losses as a tax loss.