FTX US Crash: How to Report US Taxes with Koinly
In light of recent news surrounding FTX, we recommend our users export their FTX US CSV files as soon as possible to ensure they can report their previous taxable transactions on FTX US easily in the future. You can find detailed instructions on how to export your CSV files below. We recommend that you download all the available formats for the entire period that you used the exchange as you may not be able to export these files in the future. If you cannot log in or access your CSV files on FTX US, please read our guide.
The FTX US API is no longer operational as of the 13th of November, 2022. Not sure what to do to get your taxes done? Here's our quick Q&A:
Can I pull transactional data from my existing API integration? No. Their API is offline right now.
What about my transactions which are pulled in to Koinly prior to the 13th? Will they remain in Koinly? Yes. These are fine unless you delete them or your wallet under settings.
I'm new to Koinly and I want to import all my transactions from FTX, can I do this via the FTX API? No, their API is offline. No historic or current transaction will pull through as you will see errors upon attempting to connect with FTX and FTX.us.
Can I import my historic transactions via a CSV file I've downloaded from FTX? Yes, if you're able to get your transactional info in CSV, you can import it in to Koinly.
FTX US was set up to comply with the stricter regulations in the US around prediction crypto contracts. As of November 2022, FTX US has halted withdrawals and parent company FTX has filed for bankruptcy due to financial troubles. If you have taxable transactions from the 2022 financial year, you still need to report them to the IRS. Here's how.
How to do your FTX US taxes with Koinly
Sign up to Koinly and choose your country (USA) and currency (USD)
Connect FTX US with Koinly to import all your FTX US trades safely and securely
Koinly categorizes FTX US transactions into gains, losses and income
Download your FTX US tax report from Koinly
File your FTX US taxes online with the IRS, using a self-filing tax service like TurboTax or with your crypto tax accountant
What can I do to recoup my FTX US losses?
FTX has filed for bankruptcy. This means anyone who can prove that the exchange owes them money will have to get in line to request repayment.
This will be a complex legal situation, as courts may have to decide how to treat individual clients, and where they rank in priority among other creditors. It is possible that your details as an investor on FTX are disclosed to the US authorities.
As at mid-November 2022, the situation with FTX US is still unfolding and there’s much uncertainty for investors regarding whether they'll recoup any of their losses. Here's what you need to know:
FTX has currently filed for Chapter 11 Bankruptcy. While this sounds like bad news, it means customers with assets on FTX and FTX US may still see (some) funds returned. Unfortunately, this could take years - similar to the Mt. Gox proceedings.
Currently, FTX US funds are frozen and withdrawals are halted. This means from a tax perspective there is nothing you can do to realize your loss. Your funds may still be recovered in the future, so you cannot deduct any losses.
If investors do not receive any funds back from proceedings, they may be able to claim a worthless investment loss in the future and offset this against any gains.
For investors impacted by the recent hack, the IRS does not recognize theft as a realized capital loss.
At the moment, the best thing investors can do is get all the transaction data they can from FTX US as proof of their losses for the future.
Watch how to do your FTX US taxes fastÂ
Does FTX US report to the IRS?
Yes. FTX US reports to the IRS in order to remain compliant and operational in the US. FTX US issues some users with Form 1099-MISC - and the IRS gets an identical copy.
Your frequently asked questions
Is FTX US safe?
Although FTX US is a separate entity from the parent company FTX, it did not escape the issues FTX faced in light of the liquidity crunch unscathed. FTX US halted withdrawals, deposits, and trading shortly after FTX.
Is FTX available in the US?
Yes. FTX US was set up after parent company FTX withdrew operations from the US due to regulatory issues.
Is FTX US available in New York?
No. FTX US is not available for current residents of New York State.
Does FTX US issue 1099 forms?
Yes. FTX US issues a 1099-MISC Form to any user with more than $600 in income in a single financial year. Income includes earnings like crypto interest, staking rewards and bonuses. If you're going to receive a 1099-MISC form from FTX US, you should receive it by the end of January of the following financial year. Remember, whenever you receive a 1099 form from a crypto exchange, the IRS gets an identical copy.
