Let's assume this isn't an inside job. Can she write it off on taxes? To do that she'd have to prove: 1)She owns the wallet that was compromised. Usually we need to trace funds from CEX/bank --> drained wallet if documenting this for clients. That should be fun on a bundled dev wallet... 2)Proof it was a theft/no prospect of recovery. Usually requires a law enforcement report + clear evidence it was stolen by a 3rd party. Usually we look for the funds being sent to mixers which is typical theft fingerprint. 3)Proof of profit motive This one is pretty easy. If you're shilling a CA (or think you are) you're trying to profit off your followers... What do you think, is she writing this off?