They promised you incredible returns. You invested. And now the platform has vanished, you cannot withdraw, or your wallet has simply been drained. The money is not coming back, but there are things you can — and should — do.
First things first: accept the situation
Money lost to a crypto scam is rarely recovered. Scammers operate anonymously, use intermediate wallets and move the funds fast.
That said, acting quickly and documenting everything can:
- Help the authorities trace those responsible
- Allow you to deduct the loss on your tax return
- Stop you paying tax on money you no longer have
Step 1: document absolutely everything
Before anything else, save all the evidence. Both the tax agency and the police will ask for it.
What to document:
| Type of evidence | Examples |
|---|---|
| Conversations | WhatsApp, Telegram, emails with the scammers |
| Screenshots | The platform’s website, your account dashboard, promised returns |
| Transactions | On-chain transaction hashes |
| Wallet addresses | The wallet you sent the funds to |
| Bank records | Transfers, card payments |
| Advertising | The ads that led you to the scam |
Important: take screenshots of everything NOW. Scam websites disappear within days.
Step 2: report it to the authorities
Without a formal report there is nothing to be done — neither to pursue the scammers nor to justify the loss to the tax agency.
Where to report it
| Body | Specialist unit | How |
|---|---|---|
| Policía Nacional (national police) | Brigada de Investigación Tecnológica (BIT) | In person or at denuncias.policia.es |
| Guardia Civil | Grupo de Delitos Telemáticos (cybercrime unit) | In person at any station |
| CNMV (securities regulator) | Unauthorised financial operators | cnmv.es (warnings) |
What to include in the report
- A detailed description of what happened
- Dates and amounts invested
- All the documented evidence (step 1)
- The wallet addresses involved
- Details of the platform or scammer (website, name, contact)
Always ask for a copy of the report with its reference number. You will need it.
Step 3: notify your bank (where relevant)
If you paid by card or bank transfer:
- Credit or debit card: request a chargeback. You have between 60 and 120 days from the payment.
- Bank transfer: harder, but tell them anyway. Some banks can try to recover funds if you act fast.
Do not get your hopes up: if you sent crypto straight to a wallet, the bank can do nothing.
Step 4: declare the loss on your tax return
Here comes the part almost nobody knows about: losses from a scam are deductible on your tax return.
How does it work?
A loss from a scam counts as a capital loss. You can use it to offset:
- Capital gains from the same year (other sales of crypto, shares, property)
- Gains over the following four years (if you do not have enough gains this year)
A worked example
| Item | Amount |
|---|---|
| Loss from the scam | -€15,000 |
| Crypto gains in 2026 | +€8,000 |
| Taxable base for 2026 | €0 (nothing to pay) |
| Loss carried forward to 2027 | -€7,000 |
Without declaring the scam you would have paid roughly €1,500 in tax on those €8,000. By declaring it, you pay €0.
What the tax agency requires before accepting it
- A police report: mandatory. Without one, the tax agency will not accept the loss.
- Documentation: evidence of the investment and of the scam.
- Valuation: the exact amount lost, in euros.
- A correct return: entering it in the right income tax boxes.
Step 5: get professional help
Declaring a loss from a scam comes with its complications:
- The lost crypto has to be valued correctly
- The chain of transactions has to be documented
- The right income tax boxes have to be filled in
- It has to be justified if the tax agency asks
One mistake can lead the tax agency to reject the deduction or, worse, to penalise you.
The most common types of crypto scam
| Type | How it works | Warning signs |
|---|---|---|
| Rug pull | They create a token, push the price up, sell everything and disappear | New project, anonymous team, suspicious tokenomics |
| Fake platform | A website posing as an exchange or investment platform | Guaranteed returns, no regulation, difficulty withdrawing |
| Phishing | They steal your wallet keys | Suspicious links, “airdrops” that ask you to connect your wallet |
| Romance scam | Someone earns your trust and talks you into “investing” | Online relationship, unsolicited investment advice |
| Crypto Ponzi | They pay the old investors with the new investors’ money | Very high fixed returns, aggressive referral scheme |
Can the money be recovered?
Being honest: almost never.
| Situation | Chance of recovery |
|---|---|
| Scam where crypto was sent to a wallet | Very low (~0%) |
| Card payment (chargeback) | Medium (depends on the bank and timing) |
| A regulated platform that goes under | Variable (long court process) |
| Hacked exchange (with insurance) | High (if it has a compensation fund) |
Some firms promise to recover scammed crypto. Most of them are another scam. Be wary of anyone asking you for money up front.
Frequently asked questions
Can I deduct the loss if I have no police report?
No. The tax agency requires a police report before accepting losses from a scam. No report, no deduction.
How long do I have to report it?
There is no legal deadline for reporting a scam, but act as soon as you can. Evidence disappears and memory fades. There are deadlines for a bank chargeback, though (60 to 120 days).
Can I offset the loss against my salary?
Not directly. Capital losses only offset capital gains, not employment income. But if you have gains from selling crypto, shares or funds, then yes, you can offset them.
What if the scam happened in earlier years?
You can file amended returns for tax years that are not yet time-barred (the last four). You will still need a police report and documentation.
Do I have to declare the scam even if I have no gains to offset?
Yes, it is advisable. The loss is put on record and you will be able to offset it against gains over the next four years.
Checklist: what to do if you have been scammed
- Document all the evidence (screenshots, transactions, conversations)
- File a report with the Policía Nacional or the Guardia Civil
- Keep a copy of the report with its reference number
- Contact your bank if you paid by card (chargeback)
- Gather your crypto transaction history
- Keep the documentation for four years or more
Been scammed and unsure how to declare it?
At Cryptoimpuestos we help you through the whole process. We document the loss, prepare the return and make sure the tax agency accepts it.
You will not get the money back, but at least you will not overpay tax.
Víctor Lázaro
Tax adviser, Cryptoimpuestos.es
