FTX collapsed in November 2022 and the estate is still paying creditors. That does not remove the tax position for the years you traded, and the distributions themselves may need reporting too. Upload what records you have and Recap turns them into a set of gains and losses you can file.
Disclaimer
This content does not endorse FTX and is not tax advice. If you are unsure about your position, speak to a qualified tax professional. You can also share your Recap account with your accountant or adviser directly.
What was FTX?
FTX was a cryptocurrency exchange founded in 2018 offering spot, margin and derivatives trading. FTX Trading Ltd and its affiliates filed for Chapter 11 on 11 and 14 November 2022 in Delaware. The plan was confirmed on 8 October 2024 and took effect on 3 January 2025, which was also the record date for the first distributions to creditors.
What FTX offered
Here's a breakdown of what FTX offered:
- Cryptocurrency Trading: Facilitated trading of various cryptocurrencies, including Bitcoin, Ethereum, and numerous altcoins, with advanced trading tools and features.
- Derivatives Trading: Provided options for trading cryptocurrency futures, options, and other derivatives, allowing users to speculate on price movements.
- Leveraged Tokens: Offered leveraged tokens that provided a way to gain leveraged exposure to cryptocurrency markets without the complexities of margin trading.
- Spot and Margin Trading: Enabled both spot trading and margin trading, with leverage options for more advanced trading strategies.
- Staking Services: Allowed users to stake certain cryptocurrencies to earn rewards.
- OTC Trading: Provided over-the-counter (OTC) trading services
How to simplify your FTX crypto taxes with Recap
You can make the process of calculating your taxes stress-free with our crypto tax software. Add your FTX account transactions to Recap, and our system will classify and value all transactions using our unique fair-market valuation engine and determine your tax liability.
Import Recap CSV How are FTX Transactions Taxed?
Tax implications on your FTX transactions differ based on transaction types and your tax jurisdiction. Here are the tax guidelines for the different transaction types on FTX:
| Transaction type | CGT disposal | CGT acquisition | Income |
|---|---|---|---|
| Deposits | CGT disposal: no. Depositing itself is not a disposal. Two exceptions in Recap: any deposit network fee is recorded as a disposal of the fee asset, and FTX USD-stablecoin deposits (USDC, BUSD, TUSD, HUSD, USDP) are imported as a conversion into USD, which records a disposal of the stablecoin. | CGT acquisition: no. Deposits FTX credited with promotional notes (containing "airdrop", "campaign", "reward", "prize" or "goodwill") are imported as airdrops, which add the asset to your pool. Recap's default airdrop cost: zero for portfolios created after 6 April 2024, market value for older ones. Configurable per portfolio and per transaction. | Income: no |
| Withdrawals | CGT disposal: no. Withdrawing is not a disposal, but the withdrawal fee is recorded as a disposal of the fee asset. FTX USD-stablecoin withdrawals are imported as a conversion out of USD, and withdrawals matched to a deposit in another connected Recap account become a transfer with no gain or loss. | CGT acquisition: no. Only for USD-stablecoin withdrawals, where the conversion records an acquisition of the stablecoin at the converted value. | Income: no |
| Buying crypto with fiat | CGT disposal: no. Spending fiat is not a chargeable disposal. Where FTX charged the fill fee in crypto (the fee currency on a buy is usually the coin bought), that fee is also recorded as a small disposal of the fee asset. Recap's default: fees are recorded separately. Configurable: "deduct trade fees" nets a same-asset fee off the amount acquired instead. | CGT acquisition: yes. The crypto bought enters your section 104 pool at the trade value, with the fee added to the acquisition cost. | Income: no. FTX maker-fee rebates (a negative fill fee, e.g. from staked FTT) are imported as a separate income transaction rather than as part of the trade. |
| Crypto to crypto | CGT disposal: yes. The coin sold is disposed of at the trade value, and any fee charged in crypto is recorded as a further disposal of the fee asset. Recap's default valuation for portfolios created after 25 May 2022 is the quote side of the pair. Configurable: value from the disposed side instead. | CGT acquisition: yes. The coin bought enters your section 104 pool at the same trade value. | Income: no. FTX maker-fee rebates (a negative fill fee) are imported as a separate income transaction. |
| Selling crypto for fiat | CGT disposal: yes. The coin sold is disposed of at the fill value; the fee (charged in the quote currency on a sell) is deducted from the proceeds, and is also recorded as a fee disposal where the fee asset is crypto. | CGT acquisition: no. Fiat received is not a chargeable asset, so no pool acquisition is created. | Income: no. FTX maker-fee rebates (a negative fill fee) are imported as a separate income transaction. |
| Earning staking rewards | CGT disposal: no | CGT acquisition: yes. The reward also enters your section 104 pool at the same market value, so only later movement in value is a capital gain or loss when you dispose of it. | Income: yes. FTX staking rewards are rolled up per asset per day and recorded as staking-reward income at market value on receipt. |
This table shows how Recap classifies each transaction type by default. Some treatments — such as the acquisition cost used for airdrops — are configurable in Recap. This is general information, not tax advice; consult a qualified tax professional about your circumstances.
This table shows Recap's default classification for common FTX transactions. It is not an exhaustive schedule or a ruling. Treatment depends on your circumstances and jurisdiction, and you can recategorise any transaction where yours differ. Confirm your position with a qualified tax adviser.
Refer to our tax guides for a more detailed look at crypto tax rules.
What an FTX claim means for your tax return
Losing access to crypto is not automatically a disposal, and a bankruptcy claim is itself an asset you hold in place of what you lost. When the estate pays out, you may be receiving a different asset, or cash, rather than the coins you put in, and that is where a gain or loss usually crystallises.
Putting a value on a claim
The dates above matter because they fix which tax year each step falls into. Putting a reasonable value on a claim is a judgement call rather than a calculation, so this is a point to involve an accountant rather than rely on a default. Recap gives you the underlying history and the valuations; the position you take on the claim is yours to decide.
