BlockFi has shut down. BlockFi filed for Chapter 11 bankruptcy in November 2022, emerged with a wind-down plan in October 2023, and closed its platform in 2024. You can no longer log in, and customer distributions are handled through Coinbase and the claims administrator, Kroll. If you used BlockFi, you still need to report your past activity and any distributions you received, and this guide covers how.

Whether you file by hand or use crypto tax software, doing your BlockFi taxes comes down to four steps. The difference now is that step 1, gathering your history, takes a little more work because the platform is closed.

1. Gather your full BlockFi transaction history and your bankruptcy distribution records.
2. Sort your activity. Moving crypto between your own wallets is not taxable, but disposals and the interest you earned are.
3. Calculate your capital gain or loss on each disposal, plus the value of any income at the time you received it.
4. Report it on the right forms. In the US, capital gains go on Form 8949 and Schedule D, and crypto income goes on Schedule 1. These forms get included with your full tax return. Other countries have their own equivalents.

For a detailed explainer on reporting crypto, see our guide on how to report your cryptocurrency on your taxes.

That is where crypto tax software comes in. CoinLedger takes your BlockFi history and distributions, connects them to every other wallet and exchange you have used, and generates your tax forms automatically. More than 700,000 investors use it to file in minutes. Get started with a free account today, or keep reading to do it yourself.

Do you have to pay taxes on BlockFi?

Yes. Even though BlockFi has closed, your past activity there is taxable:

• Capital gains tax. When you disposed of cryptocurrency on BlockFi (selling it, or trading one coin for another), you recognized a capital gain or loss based on how the price changed since you received it.
• Income tax. The interest you earned on BlockFi was ordinary income, taxed at its fair market value in the year you received it.

For a full breakdown, read our complete guide to cryptocurrency taxes.

How does the BlockFi bankruptcy affect your taxes?

When you receive bankruptcy distributions, the tax treatment depends on the form they took:

• Getting the same crypto back (non-taxable). If you received back the same cryptocurrency you held, that is not a disposal, so there is no taxable event yet, and your original cost basis carries forward.
• Getting cash back (taxable). If your crypto was liquidated and returned to you as cash, that is a taxable disposal. You recognize a capital gain or loss against your original cost basis.

There is an important catch with BlockFi. The distributions ultimately returned close to 100% of allowed claims, but measured in US dollars at the November 2022 petition-date value, when crypto prices were low, not at what your coins would be worth today. Because prices rose sharply afterward, many customers were made whole in dollar terms while receiving far less than their crypto's current value. In practice, that means a lot of BlockFi customers will have a taxable gain on the cash they received, rather than the loss they might expect.

Whether you can claim a loss on any shortfall is unsettled and depends on your recovery being final. Because most US customers recovered their full petition-date claim, many will have little or no deductible loss. This is worth reviewing with a crypto tax professional. For more, see our guide to FTX and BlockFi losses.

Does BlockFi report to the IRS?

BlockFi no longer issues tax forms, because it no longer operates. Historically, it issued Form 1099-MISC to users who earned $600 or more in interest or bonuses, and filed an identical copy with the IRS. You can read more about whether BlockFi reports to the IRS in our dedicated guide.

Remember, you owe tax on your gains and income whether or not you received a form. A missing form does not remove the obligation to report.

How to get your BlockFi transaction history

Because the BlockFi platform is closed, the old process of logging in and downloading a report from the Reports section no longer works. To do your BlockFi taxes now, you have a few options:

1. If you saved a BlockFi transaction history CSV before the shutdown, upload it: in CoinLedger, go to Add Account, choose the BlockFi tab, and upload the file.
2. Request your records from the claims administrator, Kroll, and use your Coinbase and Kroll distribution statements for the dates and amounts you received.
3. If you no longer have your history, reconstruct it from your bank records, your transfers to and from other exchanges, and the wallets on the other side of those transfers.

CoinLedger classifies your BlockFi transactions as taxable or non-taxable using its Bankruptcy Recovery and Bankruptcy Liquidation categories, so your distributions land on the right side of your tax report. Once your transactions are in, you can file the report yourself, hand it to your tax professional, or import it into TurboTax, TaxAct, or H&R Block.

Get started with CoinLedger today

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