Updated Checked by the Tax-Services.ca editorial team How we check
The CRA crypto guide explains capital losses on sold or swapped coins, but it does not cover coins lost to a scam or trapped on a failed platform. Whether and when such a loss can be claimed is unconfirmed. Keep every ledger, export your history and ask a professional before you file.
When can you record a crypto loss from a failed platform or scam?
This is the open question, and it helps to say so first. The CRA crypto guide explains how a gain or loss is worked out when you dispose of a coin: proceeds of disposition minus the adjusted cost base (ACB) minus outlays. A capital loss happens when that number is negative. The guide pages we read do not mention coins that are lost, stolen or stuck on a platform that has failed.
That leaves two situations that look alike but may be treated differently.
- You sold, swapped or spent the coins at a price below their cost. That is an ordinary disposition and the ordinary loss rules apply.
- You still hold a claim on a platform that is frozen, in bankruptcy or gone, or you sent coins to a scammer. Nothing was sold for a price. Whether and when that produces a loss you can report is not answered on the CRA pages we could read.
We found no CRA crypto page that says a loss can be claimed before the platform is wound up, and none that says it cannot. Until the CRA or a tax professional confirms your case, treat the timing as unknown rather than assuming you can claim the loss in the year the platform stopped working. A wrong claim can be reassessed. A missed claim can often still be added later, but check the time limits that apply to you with the CRA or an accountant.
How does a capital loss on crypto work once it is recorded?
If the loss is a capital loss, the usual rules from the CRA guide apply. Half of the loss is an allowable capital loss. Allowable capital losses can only be deducted against taxable capital gains, not against salary or other income. A net capital loss can be carried back three years or forward without limit. Our guide to the capital loss rules covers the carry-back step by step.
Here is an example with round numbers. You bought coins for $15,000 and the platform later failed with nothing recovered. If the loss is accepted as a capital loss, the loss is $15,000 and the allowable part is $7,500. In the same year you sold another holding at a $6,000 gain, which makes $3,000 taxable. The allowable loss wipes out the $3,000 and leaves $4,500 as a net capital loss to carry to other years.
The example is an illustration with made up numbers. It does not say that your loss qualifies.
What proof should you keep if a platform fails?
The CRA books and records page says to keep a transaction record for every move: the units and type of coin, the date and time, the value in Canadian dollars at that time, what the transaction was, the other party, the wallet addresses used, and each year's opening and closing balance and cost. For an exchange or custodial platform it also lists the trade ledgers (buys, sells, swaps), transfer ledgers (crypto and cash deposits and withdrawals) and any other activity on the platform. Keep records for at least six years from the end of the last tax year they relate to.
The same page tells you to export your activity history regularly, because a platform may stop serving Canada, shut down or lock you out of your account. This matters most for a loss. If the platform disappears with its servers, your own exports may be the only proof of what you bought and what it cost.
| What to keep | Why it helps |
|---|---|
| Trade and transfer ledgers exported from the platform | Shows what you bought, when, and at what price |
| Deposit and withdrawal records for cash and coins | Shows how much you put in and what you took out |
| Bank or card statements | Backs up the cost in dollars |
| Emails, notices and court or trustee documents from the platform | Shows when it stopped paying out and what was said about recoveries |
| Wallet addresses and transaction IDs for anything sent to a scammer | Shows where the coins went and when |
| Police or fraud centre report numbers | Shows you reported the loss promptly |
The last two rows go beyond what the CRA page lists. They are sensible records for a loss, not CRA requirements.
What if you get some money back later?
Recoveries change the numbers. If a trustee or court pays back part of what the platform held, the amount you receive is generally part of your proceeds. Using the same example, you lost coins costing $15,000 and later $4,000 comes back. The loss becomes $11,000 and the allowable part is $5,500, down from $7,500.
If you already claimed the first figure on a return, a later recovery means the earlier claim was too high. Keep the dates of each payment so the adjustment can be matched to the right year. An accountant can say whether the return needs to be changed. Payments may also come back as coins at a value that differs from your cost, which adds a valuation step. The CRA value page says to use a reasonable and consistent method and to value each coin separately.
What about stolen crypto and scams?
A scam is not the same as a market loss. In a typical scam you send coins to an address that looks like a real service, or a thief takes them from a hacked wallet. The CRA crypto guide pages we read have no section on theft or fraud. We found no official statement on whether a theft is a disposition, or whether a loss from fraud is a capital loss, a business loss or neither.
What can be said safely is practical. Report the scam to the police and to the Canadian Anti-Fraud Centre. Keep the proof of the transfer and the blockchain transaction ID. Write down what the coins cost you and when you bought them. If you later claim the loss, a professional will want all of that. If you carry on a crypto business, the CRA guide says a business loss arises when revenue is less than expenses, and the treatment of stolen stock is a separate question to raise with an accountant.
Do not post a loss claim on your return just because a social media post says it is allowed. Rules that sound simple often depend on facts such as who held the coins and what you were promised.
What do the CRA pages not say?
Because this topic carries real money, here is the list of gaps we could not close from official pages checked in November 2026.
| Question | Status |
|---|---|
| Can a loss be claimed before a failed platform is wound up? | Not confirmed on a CRA crypto page |
| Is a theft or scam loss a capital loss? | Not confirmed on a CRA crypto page |
| Does the superficial loss rule apply if you buy the same coin again soon after? | Not confirmed on a CRA crypto page |
| Is a loss on coins held through a platform treated differently from coins in your own wallet? | Not confirmed |
| How a trustee payout is split between return of property and compensation | Not confirmed |
This page is information only. We do not give tax or legal advice, we do not represent the CRA or any organization, and we do not guarantee that the information is accurate or current. If your loss is large, a Chartered Professional Accountant or tax lawyer can look at your facts, and the CRA can answer questions about your return. See also our overview of crypto tax in Canada and the page on whether crypto is taxable.
What steps make sense after a loss?
- Export every ledger and statement you can still reach, and save them in two places.
- Write a short timeline: when you bought, how much you paid, when withdrawals stopped, and every notice you received.
- Report the scam or the failure to the police and, for scams, the Canadian Anti-Fraud Centre. Keep the report numbers.
- Do not sell or swap other coins in a rush only to match gains with a loss you are unsure about. Our page on capital gains tax shows how gains are taxed.
- Keep an eye on trustee or court notices for recoveries, and record each payment.
- Ask an accountant how your return should treat the loss before the filing deadline, which is 30 April 2027 for the 2026 tax year (15 June 2027 if you or your spouse run a business, with any balance still due 30 April).
Frequently asked questions
Can I claim a capital loss if my crypto platform went bankrupt?
The CRA crypto guide pages we read do not answer this. A capital loss normally needs a disposition, and a frozen account may not be one yet. Whether you can claim it now or only after the process ends is unconfirmed, so ask an accountant or the CRA before you file.
What happens to the loss if I recover some of my coins later?
A recovery reduces the loss. In an example with a $15,000 cost and $4,000 later returned, the loss falls to $11,000 and the allowable part to $5,500. If a larger claim was already made, the earlier return may need to be changed, so keep dates and amounts of every payment.
Is a stolen or scammed crypto loss a capital loss?
We found no official CRA statement on this. The CRA guide covers sales, swaps and spending, not theft. Treat it as unconfirmed, keep every record of the transfer and the cost of the coins, report the fraud to the police, and ask a professional how to handle it.
Can capital losses from crypto reduce my salary income?
No. The CRA says allowable capital losses can only be deducted from taxable capital gains, not from income from other sources. Unused net capital losses can be carried back three years or forward without limit, as the CRA guide explains.
What records does the CRA say I should keep?
The CRA lists transaction details, wallet addresses, balances and costs, exchange trade and transfer ledgers and mining records. Keep them at least six years from the end of the last tax year they relate to, and export platform history regularly in case it shuts down.
Does this page tell me whether my loss qualifies?
No. It explains the published rules and lists what is not confirmed. Your facts, such as who held the coins, what you were promised and how the platform failed, decide the outcome. Use the page as background and speak to a qualified professional about your own case.