This page explains what to do if you've lost coins due to fraud, hacking, or transaction errors.
According to the National Tax Agency's website, it's highly likely that losses due to fraud may not be deductible, and it will be assessed on a case-by-case basis, so it's not possible to provide uniform guidance. Ultimately, please confirm with your local tax office or tax accountant.
This help page serves as an introduction to one possible method of adjustment. The final decision on how to adjust and whether it will be accepted lies with the tax office. Please be sure to confirm with your local tax office.
After confirming the above, we will guide you on how to reduce the coins by uploading the history of lost coins as "REDUCE" or "LOSS".
If the losses cannot be recognized
Specify the transaction type as "REDUCE" and enter the lost quantity in the transaction volume.
▼Example： Due to hacking, 5 ETH was stolen.
| 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.
If the losses can be recognized
Specify the transaction type as "LOSS" and enter the lost quantity 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.
How to upload
If, hypothetically, you received some form of compensation in the form of another coin as a guarantee for the coins lost due to fraud, the tax treatment would be subject to the determination of the relevant tax authority, as outlined above. Subsequently, whether to enter the lost coins as "REDUCE" or "LOSS" and to add the received coins as "BONUS（2.8 Received coins by bonus, campaign, or AirDrop/hard fork）," or to treat it as "SWAP"（2.16 SWAP）," is a decision for the individual to make.
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.