FTX Crash: How to Report FTX Taxes with Koinly

The FTX API stopped working in November 2022. For users connected via API prior, your previous transaction data is safe and stored in Koinly. If you had existing FTX CSV files, you can upload these to Koinly and Koinly will still be able to calculate your FTX gains, losses, and income.

What happened to FTX?

FTX collapsed and filed for bankruptcy suddenly in November 2022, with millions of users left with losses due to their funds being frozen on the platform. For more information, read the FTX collapse explained.

How to do your FTX taxes with Koinly

FTX crypto exchange was a large global crypto exchange that specialized in advanced trading like derivatives, futures and leveraged tokens. As of November 2022, the exchange has closed down following a liquidity crunch and other financial difficulties. But if you have taxable transactions from earlier in the financial year on FTX, you still need to report your gains, losses or income to your tax office. Here's how.

  1. Sign up to Koinly and choose your country and currency

  2. Connect FTX with Koinly to import all your FTX trades safely and securely

  3. Koinly categorizes FTX transactions into gains, losses and income

  4. Download your FTX tax report from Koinly

  5. File your FTX taxes online or with your crypto tax accountant

What can I do to recoup my FTX 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.

As at mid-November 2022,  the situation with FTX 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 - which means customers with assets on FTX may still see some of their funds returned, but this could take years - as was the case with the Mt. Gox proceedings. Depending on the outcome of the proceedings, investors may be able to claim capital losses later on if their funds are not returned.

  • Currently, all FTX 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, so you cannot deduct any losses.

  • For those potentially affected by the recent hack, there is a chance these users may be able to claim capital losses later (depending on their country's view on theft and capital losses) and offset these against their gains in the future.

  • At the moment, the best thing investors can do is get all the transaction data they can from FTX as proof of their losses for the future.

HMRC and FTX losses in the UK

For UK investors, you may file a negligible loss claim with HMRC in the future if it becomes apparent your assets will not be returned.

ATO and FTX losses in Australia

Australian investors may be able to claim a capital loss in the future if it becomes apparent your assets will not be returned.

CRA and FTX losses in Canada

The CRA is yet to give specific guidance, but it is likely investors would be able to claim a capital loss in the future should their assets not be recovered.

IRS and FTX losses in America

US investors should read our FTX US guide for specific advice.

Watch how to do your FTX taxes fast 

Does FTX report to the IRS?

FTX stopped operating in the US due to the strict regulations around crypto prediction contracts. This is why FTX US was set up. We can assume from this that FTX have been under considerable scrutiny by both the IRS and other financial authorities in the US.

Your frequently asked questions

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