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How to Handle Crypto From a Closed Exchange

To handle crypto from a closed exchange, gather every available statement, email confirmation, bank transfer, on-chain transaction ID, prior tax report, and account export, then reconstruct the buy, sell, and transfer history with a qualified tax professional. Even when the platform is gone, you generally still need these records to support cost basis and gain or loss reporting.

A closed exchange is any platform that has shut down, failed, frozen withdrawals, or entered bankruptcy and can no longer give you complete trade and balance data on demand. Because the IRS generally treats digital assets as property, each disposition still needs a cost basis and a holding period, even if the exchange that held the records no longer exists. That gap is what makes reconstruction necessary, and it connects to the broader work covered in our Crypto Tax Records Hub.

How to Reconstruct the History (Step by Step)

  1. Collect every source you still control. Pull old CSV exports, email confirmations, bank and wire transfer records, prior tax-software reports, screenshots, and any custodian or exchange notices.
  2. Recover on-chain data. Capture deposit and withdrawal transaction IDs so blockchain explorers can confirm dates, amounts, and counterparties the exchange can no longer verify.
  3. Check bankruptcy and claims portals. If the exchange failed, claim filings and court schedules may list balances and distributions relevant to your basis and recovery.
  4. Rebuild the activity log. Identify purchases, sales, withdrawals, deposits, fees, and transfers to other wallets so each taxable event can be separated from non-taxable movement.
  5. Document gaps and method. Where cost basis cannot be located, record the assumptions and method used so the approach is defensible if questioned. This overlaps with how to reconstruct crypto cost basis.

Where to Look for Records

  • Old CSV downloads and account exports.
  • Email confirmations and statements.
  • Bank and wire transfer records.
  • Prior tax-software reports.
  • Blockchain transaction IDs.
  • Screenshots of balances and trades.
  • Custodian or exchange notices.
  • Bankruptcy or claims-portal records, if applicable.

What to Reconstruct

Aim to identify every purchase, sale, withdrawal, deposit, fee, and transfer to another wallet. Internal transfers between your own wallets are generally not taxable, so separating them from sales matters; our notes on how to separate crypto transfers from taxable sales go deeper. Where cost basis is genuinely missing, document the gap and your reconstruction method rather than leaving the figure blank, which is the same discipline described in what to do if crypto tax records are missing.

Do Not Ignore It

A closed exchange does not erase a reporting obligation. You may still need records to support gain and loss figures on Form 8949, to establish cost basis, and to respond to any IRS notice. Acting while statements and inboxes are still accessible is usually easier than reconstructing years later.

Related Questions

What if the closed exchange will not give me my records?

Reconstruct from sources you control, such as bank transfers, wallet history, and on-chain transaction IDs, and document the method you used. The exact treatment depends on your facts, so review the reconstruction with a qualified tax professional before filing.

Are transfers off a closed exchange taxable?

Moving your own crypto between wallets you control is generally not a taxable event, while selling or swapping generally is. The distinction drives your reporting, so confirm each movement against on-chain records.

Can I report crypto if I cannot find any cost basis?

You generally still must report the disposition; a missing cost basis often defaults toward a higher reported gain. Document a reasonable, supportable basis where possible and consult a qualified professional about your options.

Sources

Compliance Note

This article is educational and does not provide legal, tax, accounting, bankruptcy, investment, or custody advice. No reconstruction method removes tax, custody, or market risk, and outcomes depend on your specific facts. Closed exchange records should be reviewed with qualified professionals.

Disclosures

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