Letter Writer Loses $240K in Elaborate Crypto Investment Scam Initiated on Instagram
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The letter writer lost $240,000 in a crypto investment scam initiated by someone they met on Instagram.
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The "friend" convinced them to invest by showing initial returns, then claimed more investment was needed for VIP tax help.
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The website looked legitimate but was a fake mimicking the real Cryptonex site. The company now demands more money.
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It's difficult to write off such losses for tax purposes unless theft charges are filed or it qualifies as a Ponzi scheme loss.
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Victims face slim chances deducting losses but if successful may deduct up to 95%; however audit risks exist in claiming deductions.