How to Rebuild Crypto Records After an Exchange Bankruptcy

An exchange bankruptcy can interrupt access to trade history and leave a crypto tax file with missing transactions or basis. Rebuilding the records begins with an inventory of what you still have. Do not assume a frozen account creates a tax loss or that a later distribution has one standard tax treatment.

Preserve the original evidence

Save any exchange CSV files, statements, tax forms, email confirmations, claim documents, distribution notices, and screenshots you already possess. Keep the original files and note when and where each was obtained. Request available history through the exchange or claims administrator’s official channel. Some portals provide balances or claim amounts but not a complete trade ledger.

Rebuild the transaction trail

1. List the accounts and wallets. Record the exchange account, wallet addresses, assets, and time periods. Identify which wallets you controlled using records beyond a transaction hash.
2. Match transfers. Compare exchange deposits and withdrawals with wallet transactions using dates, asset amounts, network, fees, and transaction identifiers. An on-chain transfer alone does not prove who controlled both ends.
3. Reconstruct purchases and sales. Use trade confirmations, prior exports, broker statements, and other records to establish quantity, acquisition date, proceeds, and basis. A bank transfer can show funding, but it does not by itself prove which crypto lot was purchased.
4. Record distributions separately. Preserve the asset or cash received, date, amount, fair market value evidence, and claim documentation. Do not label it a sale, income, or recovery of basis before reviewing the legal and tax facts.
5. Keep an exception log. Mark each missing trade or uncertain classification. State the evidence used and any assumption rather than inserting a zero-basis placeholder to make the software run.

The IRS digital asset FAQ explains the need for records that support tax return positions. The Form 8949 instructions discuss basis and recordkeeping for digital assets.

Separate records from tax conclusions

Bankruptcy claims, transfers of claims, in-kind crypto distributions, cash payments, and any remaining unrecovered amount can involve different tax questions. The timing and character of a possible gain or loss depend on the plan, the claim, the assets, and the taxpayer’s facts. The Taxpayer Advocate Service cautions that a decline in value or bankruptcy filing alone does not establish a deductible investment loss. Have a tax professional review the reconstructed ledger and distribution documents before filing.

Our crypto reconciliation service traces the activity and prepares a documented ledger for tax review. Book a free consultation or request a $500 crypto diagnostic to identify the missing records and scope.

This article is general information, not a determination of any exchange bankruptcy’s tax treatment.