This page explains what to do if you've lost coins due to fraud, hacking, or transaction errors.
Contents
1．Attention
According to the National Tax Agency’s website, it is highly likely that losses resulting from fraud cannot be claimed, and each case must be evaluated individually. Therefore, we are unable to provide a blanket guidance. Ultimately, you should confirm the matter with your local tax office or a certified tax accountant.
Please note that this help page merely presents one possible example of how adjustments might be made. Whether and how such adjustments should be applied—and whether they would be accepted—are ultimately decisions for the tax authorities. Be sure to consult your local tax office for confirmation.
2．How to Upload the History
After verifying the above, please refer to the following instructions for how to record history when uploading via a custom file.
- Download the sample custom File：1.1 Sample files
- You can also review the detailed instructions on how to complete it here
2‑1．When losses cannot be recorded (reducing the quantity only)
Use “REDUCE” as the transaction type, and record the number of units lost in the transaction quantity field.
▼Example: You were hacked and lost 5 ETH.
| Timestamp | Action | Source | Base | Volume | Price | Counter | Fee | FeeCcy | Comment |
| Trade datetime*1 | REDUCE | any | ETH | 5 | Blank*2 | JPY*3 | 0*4 | JPY | optional |
*1 The date when the coins were lost.
*2 If the base currency is one of cryptact’s supported coins, we will refer to the market price. However, you may also provide the price you researched yourself.
*3 We only accept Fiat currencies. You cannot enter coins, it will result in an error.
*4 The basic entry should be "0". If the FeeCcy that can be recorded matches the Base, you can specify it. If the currency is different, you need to separately list the reduced amount of the fee.
2-2．When a loss can be recognized
Use "LOSS" as the transaction type, and enter the amount lost in the transaction volume.
▼Example: Due to a transfer error, I lost 2 ETH. When I consulted the tax office, they informed me that I can record this loss.
| Timestamp | Action | Source | Base | Volume | Price | Counter | Fee | FeeCcy | Comment |
| Trade datetime*1 | LOSS | any | ETH | 2 | Blank*2 | JPY*3 | 0*4 | JPY | optional |
*1 The date when the coins were lost.
*2 If the base currency is one of cryptact’s supported coins, we will refer to the market price. However, you may also provide the price you researched yourself.
*3 We only accept Fiat currencies. You cannot enter coins, it will result in an error.
*4 The basic entry should be "0". If the FeeCcy that can be recorded matches the Base, you can specify it. If the currency is different, you need to separately list the reduced amount of the fee.
3. If You Receive a Refund Guarantee
Even if you receive cryptocurrency from an exchange as a refund guarantee for coins lost due to fraud, whether this is recognized for tax purposes still depends on the judgment of your local tax office. In that case, you’ll need to decide for yourself how to handle the transaction:
Enter the lost coin using "REDUCE" or "LOSS", just as described above.
For the refunded or received coins, you can choose to record them as ”BONUS (as in section 2‑8: chat bonus / campaign / airdrop / funding / hard fork receipt),” or categorize it as an ”SWAP (section 2‑16: swap / exchange of cryptocurrencies).”
Please decide the applicable method yourself, in consultation with your tax authority.
Disclaimer
As stated in the Terms of Use, cryptact is not responsible for the above statements or any events derived from them. If you have any questions about taxation, please consult your own tax accountant.