The Tax Implications of Sam Bankman-Fried’s Conviction

November 14, 2023

As a closing thought, U.S. taxpayers who are creditors of FTX.com, rather than FTX.us, should speak to their tax advisors about any loss deductions being sought. U.S. individuals were not supposed to be using FTX.com as it was an offshore entity not subject to U.S. jurisdiction, which means activity on that exchange was technically not legal. Although no criminal charges are likely to be brought against U.S. individuals who improperly used FTX.com, the IRS may use the impropriety of that activity to deny any losses claimed.

The source of this news is from TaxBit