Key Takeaways
- • Lionsgate Intelligence Network launched a free Section 165 calculator and evidence service enabling cryptocurrency scam victims to estimate potential tax relief on qualifying investment-fraud losses.
- • Consumers lost more than $1 trillion to scams globally in 2024 according to the Global Anti-Scam Alliance, creating substantial demand for tax-loss recovery mechanisms even when fund recovery is unlikely.
- • Section 165 tax relief applies to theft-loss deductions under IRS Chief Counsel memorandum 202511015 (March 14, 2025), requiring proof that conduct constitutes theft under state law, the transaction was profit-motivated, and no reasonable recovery prospect exists.
- • The service delivers CPA-ready documentation packages organizing transaction records, recovery efforts, and theft evidence; October 15 represents the deadline for taxpayers on extension to report discovery-year theft losses on Form 4684.
- • Relief coverage extends beyond cryptocurrency to U.S. dollar losses and other property transferred via wire, brokerage accounts, payment apps, or similar channels from fake investment platforms, wire fraud, and brokerage compromises.
Summary
Lionsgate Intelligence Network, a blockchain forensics and fraud investigation firm, has introduced a complimentary Section 165 calculator and supporting evidence service targeting victims of cryptocurrency scams and investment-related fraud schemes. The tool allows affected individuals to estimate potential tax deductions available under Internal Revenue Code Section 165, which permits theft-loss deductions when specific conditions are met—even when stolen funds cannot be physically recovered.
The initiative addresses a significant market gap. Consumers lost more than $1 trillion to scams in 2024, according to the Global Anti-Scam Alliance, underscoring the scale of fraud-related financial harm. While fund recovery often proves impossible, eligible victims may access tax relief to partially offset losses. The service applies to diverse fraud vectors, including fake investment platforms, wire fraud schemes, and brokerage account compromises involving cryptocurrency, U.S. dollars, or other property.
According to IRS Chief Counsel memorandum 202511015, released March 14, 2025, investment-fraud losses qualify for Section 165 relief when three conditions are satisfied: the underlying conduct constitutes theft under applicable state law, the transaction was entered into with profit intent, and no reasonable prospect of recovery remains. Lionsgate's service package documents each element, organizing transaction records and recovery efforts into formats suitable for CPA review and tax filing.
Timing carries material implications for taxpayers. October 15 marks the deadline for those filing on extension to report discovery-year theft losses on Form 4684, making the service particularly relevant during the current filing season. Bezalel "Eithan" Raviv, Founder and CEO of Lionsgate Intelligence Network, positioned the offering as supporting both individual victims and the accounting professionals guiding them through fraud's financial and tax aftermath, emphasizing the firm's role in investigating fraud mechanics, documenting recovery efforts, and assessing recovery feasibility.
The initiative addresses a significant market gap. Consumers lost more than $1 trillion to scams in 2024, according to the Global Anti-Scam Alliance, underscoring the scale of fraud-related financial harm. While fund recovery often proves impossible, eligible victims may access tax relief to partially offset losses. The service applies to diverse fraud vectors, including fake investment platforms, wire fraud schemes, and brokerage account compromises involving cryptocurrency, U.S. dollars, or other property.
According to IRS Chief Counsel memorandum 202511015, released March 14, 2025, investment-fraud losses qualify for Section 165 relief when three conditions are satisfied: the underlying conduct constitutes theft under applicable state law, the transaction was entered into with profit intent, and no reasonable prospect of recovery remains. Lionsgate's service package documents each element, organizing transaction records and recovery efforts into formats suitable for CPA review and tax filing.
Timing carries material implications for taxpayers. October 15 marks the deadline for those filing on extension to report discovery-year theft losses on Form 4684, making the service particularly relevant during the current filing season. Bezalel "Eithan" Raviv, Founder and CEO of Lionsgate Intelligence Network, positioned the offering as supporting both individual victims and the accounting professionals guiding them through fraud's financial and tax aftermath, emphasizing the firm's role in investigating fraud mechanics, documenting recovery efforts, and assessing recovery feasibility.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.