Happy Tuesday, Barkada --

The PSE gained 68 points to 6355 ▲1.1%

Thanks to Spyfrat's Call for the meme appreciation, and to Jing for the trauma bonding over our unmet DDMPR expectations.
There is a lot of reading for me to do on the quarterly earnings reports, and I will definitely be taking a deeper dive on a few stocks (like MONDE) over the coming days. Let me know if there are any stocks that you'd like to see covered and I'll see what I can do!
Shout-outs to rethon-ji, John, Stephen Chiong, Makisig Tan, Pao, Jonathan Burac, Just’n, LanAustria, CubicTrade, Palaboy Trader, mArQo, arkitrader, Lance Nazal, Grumpy Trader, Chip Sillesa, Dividend Pinoy | PGG, Rolex Jodieres, leaf, and Jing for the retweets, and to Padilla GJ, Genesis Umali, Evolves.co and Mike Ting for the FB shares!

▌In today's MB:

• DITO forex losses climb to ₱6-B in Q3
• PSE: Twenty companies seeking Q3 reporting deadline extension
• MREIT declares slightly lower Q3 div
• Phoenix Petroleum Q3 profit ▼1,051% y/y

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▌Main stories covered:

• [Q3] DITO forex losses climb to ₱6-B in Q3... DITO CME [DITO 2.81 ▼2.09%] [link] reported Q3 profit down 88% y/y, and down 28% q/q, to a net loss of ₱11 billion. DITO’s 9M profit is down 174% y/y to a net loss of ₱26 billion, driven largely by the degrading value of the Philippine Peso relative to the US Dollar, and the unrealized foreign exchange losses that DITO has accumulated on its huge outstanding dollar-denominated debts. DITO noted ₱2.9 billion in unrealized forex losses in Q1, ₱4.4 billion in Q2, and now another ₱6 billion in Q3, for a total of ₱13.3 billion since the start of the year. DITO said that it had 13.1 million subscribers at the end of Q3 (up 36% from Q2), and that they generated an average revenue per user (ARPU) of ₱77.3 per month. The ARPU figure is down 4.6% from DITO’s H1/22 ARPU of ₱81/month. DITO’s current ratio (current assets / current liabilities) at the end of Q3 was 0.02. For reference, DITO’s competitors, Globe [GLO 2212.00 ▼3.83%] and SMART [TEL 1544.00 ▲0.92%] have current ratios that bounce between 0.33 and 0.45.
  
  • MB: In the management discussion and analysis section of the financial statements, DITO’s management says that “despite its reported capital deficiency, management is confident that [DITO] can continue as a going concern as management believes that [DITO’s] ability to continue as a going concern is dependent upon its ability to generate sufficient cash flows to meet its maturing obligations.” It’s kind of a weird wording. Maybe I’m being too picky, but it feels like DITO’s management is not explicitly stating that they believe they will generate enough cash flow to meet maturing obligations, only that they believe that DITO’s ability to avoid bankruptcy will depend on its ability to do that. It’s true that their subscriber count is growing quite quickly, but the amount of revenue that they’re getting from each of those subscribers is low and going lower over time. Sure, GLO’s ARPU was only about ₱80/month for 88 million subscribers, and TEL’s ARPU was about ₱106/month for 68 million subscribers. And those are fully mature businesses that have already built out their initial networks. The point is that it’s not like DITO just has to survive for a few more years before it passes through some magical barrier where costs fall dramatically and profits start to skyrocket. Once the initial build-out is done, it’s still going to need to have a significant yearly budget for capex to keep pace and keep growing. It’s low-cost strategy is going to keep its ARPU low, which will suppress revenues. That debt isn’t going anywhere. And while Udenna and China have “committed” to infuse additional capital into Dito Tel, Dennis Uy’s companies are bleeding out the ears, so it’s not like there’s a cash cow in the group that can serve as a gold farm for Udenna’s portion of that commitment.
• [Q3] Twenty companies now seeking a Q3 earnings report deadline extension... The list of companies that are seeking deadline extensions from the PSE exploded in size yesterday, as the PSE’s deadline for submission of Q3 earnings reports came and went. There are now 20 companies that are unable to comply with the PSE’s reporting requirements, up from just eight the day before. COL Financial [COL 3.17 unch] (still consolidating) and CTS Global [CTS 0.86 ▼1.15%] (more time to finalize and get approvals) started the request fest last week, followed by National Reinsurance [NRCP 0.64 ▼1.54%] (still reviewing and finalizing), LBC Express [LBC 16.10 unch] (still reviewing data), TKC Metals [T 0.51 ▼1.92%] (still finalizing financial statements), STI Education [STI 0.32 ▼1.54%] (skeleton administrative crews hit by dengue and COVID outbreaks), Benguet Corp [BC 4.05 ▼3.57%] (still writing management’s discussion section), and Haus Talk [HTI 0.83 ▼2.35%] (still finalization and consolidating). Then, yesterday, we saw applications filed by SOCResources [SOC 0.47 unch] (still finalizing), ATN Holdings [ATN 0.36 unch] (accounting department needs time), Cirtek [TECH 2.46 ▲0.41%] (still reviewing data), Vantage Equities [V 0.73 unch] (finalizing data and getting signatures), Manila Bulletin [MB 0.39 ▲4.00%] (still reviewing data and getting signatures), Alsons Consolidated [ACR 0.79 ▲1.28%] (still finalizing and getting approvals), Transpacific Broadband Group [T 0.51 ▼1.92%]BGI (accountant needs more time), Central Azucarera de Tarlac [CAT 9.50 unch] (still reviewing data), Steniel Manufacturing [STN suspended] (needs more time), AgriNurture [ANI 7.69 ▼0.26%] (still reviewing data), Greenergy [GREEN 1.63 ▼0.61%] (still reviewing data), and Manila Mining [MA 0.01 unch] (communication problems with Surigao del Norte). All of the companies committed to submitting proper financial reports on or before November 21.
  
  • MB: Delays happen because life is unpredictable and chaotic, and any accountant (or person married to an accountant) will tell you that preparation and consolidation of financial statements is something that is difficult to rush. You can’t just wander down into the harshly-lit, under-decorated accounting department and say things like “WORK HARDER!” There is only so much time you can make up with additional overtime hours or temp workers. So, on some level, I am understanding when things come up and conspire to make for a delay. As a default though, as an investor, I start by looking at a request for an extension as a failure of process. A failure to schedule the resources needed to do the things that you need to do, in the timeframe that you need to do them. Sometimes a delay is because there’s been a huge transaction (like an acquisition or sale) close to the reporting deadline, but that kind of event is usually pretty obvious and is something that we all know can’t be solved by “process” alone. That said, the vast majority of the “reasons” given to justify an extension here boil down to some tautological version of “we need more time to finish the reports because the reports aren’t finished yet.” Only STI seemed to provide a detailed outline of the circumstances that conspired to cause its delay, in such a way that could allow an investor to gain comfort that the management team seems to understand the problem well enough to prevent it from happening in the future.
• [NOTES] Quick takes from around the market...
  
  • MREIT [MREIT 11.90 ▼0.50%] [link] MREIT declared a Q3/22 dividend of ₱0.2444, payable on December 15 to shareholders of record as of November 25. The dividend has an annualized yield of 8.22% based on the previous closing price, which is -0.97% smaller than Q3's pre-dividend annualized yield of 8.3%. Relative to MREIT's IPO price, the dividend increased MREIT's total stock and dividend return to -18.55%, up from its pre-dividend total return of -20.06%.
    • MB Quick Take: C-c-c-combo breaker! While it’s only a slight step back, the lower div breaks MREIT’s streak of dividend increases that started back in Q1 of this year. MREIT’s net income was down almost 7% q/q, and shareholders still aren’t getting the benefit of the dividend-increasing property-for-share swap that MREIT and Megaworld [MEG 2.12 ▲2.91%] negotiated in April; the transaction is on-hold, awaiting approval from the SEC.
  • Phoenix Petroleum [PNX 8.49 unch] [link] Q3 profit ▼1051% y/y (▼761% q/q) to a net loss of ₱0.95 billion. 9M profit ▼734% y/y to net loss of ₱1.1 billion. PNX said that its liquified natural gas trading business was the “bright spot” in its portfolio, increasing 11% q/q with strong demand in both Viet Nam and the Philippines. Otherwise, PNX said that the “exceedingly challenging macroeconomic backdrop” of volatile oil markets, inflation, peso weakness, higher interest rates, and lower demand, caused its domestic fuel volume to “sharply drop” (-44%) and its overseas trading desk to “take a breather” (-35%).
    • MB Quick Take: PNX is just a gasoline reseller, so it lives and dies by demand for gas and its ability to monetize access to that gas. Unfortunately for PNX, the price of gas increased dramatically during the year, and demand for that gas has dropped off a cliff. That’s a terrible combination for a business that relies on volume and site visits to keep revenues cycling and keep stations profitable. Sentiment seems to be that oil prices are headed for $100/barrel again soon, and that “upside” risk is growing, so it doesn’t look like this part of the equation will turn in PNX’s favor any time soon.

MB is written and distributed every trading day. The newsletter is 100% free and I never upsell you to some "iNnEr cIrClE" of paid-membership perks. Everyone gets the same! Join the barkada by signing up for the newsletter, or follow me on Twitter. You can also read my daily Morning Halo-halo content on Philstar.com in the Stock Commentary section, and in the Saturday edition of the Daily Manila Shimbun.

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Happy Wednesday, Barkada --

The PSE gained 113 points (!!) to 6851 ▲1.7%

Good work! Over 200 Barkadans clicked on the PSE STAR registration link yesterday. There's another full day of presentations (schedule below), so I am literally begging you to take the time to check it out. You don't have to commit to the whole day. Just watch part of one!
Click here to register!
Here's the schedule of events for today: BNCOM: 10:25 AM DNL: 11:15 AM PIZZA: 1:30 PM CREIT: 2:15 PM MREIT: 3:10 PM
*** PROGRAMMING NOTE *** I'm going on vacation tomorrow. I'm still going to be in the markets, I just won't be researching, writing, and producing MB each morning before my family wakes up. :) I'm still reachable by Twitter, Reddit, Facebook, and email if you have any questions, comments, concerns, or business inquiries!
See you at 8 AM on September 1!
Congrats to LanAustria (@airtsua_lan) for winning the P1,000 Grab Food voucher draw! Thank you to all the 55 Barkadans that retweeted and shared to enter!
Shout-outs to Eddie V. Tangonan, Jon Bal, Monreg#1977, Jonathan Burac, LanAustria, mike, Inhinyerong Trader, Jr Martin, BokLamayan, Just’n, Palestinian_Sonic, Stephen Chiong, Jay Agonoy, Zhar, Bien EC, Pao, BonitZ, A J M Ching, Makisig Tan, kalelManila.eth, Palaboy Trader, JH, Alex Axle, Alex Suthisarn, Alex, Lance Nazal, Palaboy Trader, Dividend Pinoy | PGG, Corgi Buttowski, Chip Sillesa, arkitrader, leaf, meloi, Marvin Mercado,and Jing for the retweets, and to Catherine Buhat, Marvin Quezon, Padilla GJ, Marvin Rodriguez Gonzaga, Marc Carlson Yee Buhat, Lian Santos, Evolves.co, and Mike Ting for the FB shares!

▌In today's MB:

• DITO CME lost ₱7.3 billion on forex in H1
• VistaREIT Q2 div is actually a blended special/regular dividend
• JG Summit’s Q2 profit didn’t drop 95%... it went up 335%!
• PLUS: Quick takes on CTS, COL, and ALLDY

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▌Today's sponsor: Balai Ni Fruitas

▌Top 3 MB indices:

 Crony ▲2.86% REITs ▲1.77% Logistics ▲1.65% 

▌Bottom 3 MB indices:

 Hedgy Metal ▼0.49% Power Gen. ▼0.03% Connectivity ▲0.02% 

▌Main stories covered:

• [Q2] DITO CME lost ₱7.3 billion on forex in H1... DITO CME [DITO 3.76 ▼0.53%] [link] posted a Q2/22 net loss of ₱8.6 billion, down 292% from its Q2/21 net loss of ₱2.2 billion, and down 9% from its Q1/22 net loss of ₱7.9 billion. DITO is the parent company of Dito Tel, but the 3rd telco’s financials were not officially incorporated into DITO’s financial statements until the share-swap was executed in H2 of 2021. Prior to Dito Tel’s inclusion, DITO’s financials were basically the interest that the company made off of extending loans to Dennis Uy’s other companies, like Udenna Corp and Chelsea [C 1.18 unch], while waiting for the share-swap to complete. The result is that year-on-year comparisons of the Q2 and H1 data are basically useless. Of course DITO will show a 957% uptick in H1 revenue; it didn’t really earn anything in H1/21. Of course DITO will show massive upticks in H1 expenses; it didn’t really do anything in H1/21. This means that we need to be looking at quarter-on-quarter data to derive anything interesting about Dito Tel. On a q/q basis, DITO’s ₱8.6 billion net loss is only 9% worse than the ₱7.9 billion loss it posted in Q1. Comparing DITO’s Q1 report to its Q2 report, total revenues are up 27% to ₱1.7 billion, but DITO’s operating loss widened by 0.35% to ₱3.4 billion. General expenses were up 3% to ₱2.9 billion. Interest expense was up 34% to ₱0.8 billion. DITO also revealed that it incurred ₱7.3 billion in unrealized foreign exchange losses in H1, as the value of the Philippine Peso (the currency its customers use to pay for its services) dropped dramatically as compared to the US Dollar and the Chinese Yuan. As of the end of H1, DITO has US $1.16 billion in interest-bearing loans that, at current exchange rates, represent ₱63.9 billion in liabilities. The exact same loan, measured at the end of 2021, represented “only” ₱59.0 billion in liabilities. That’s a net difference of ₱4.9 billion in just 6 months.
  
  • MB: Those forex losses are startling. When DITO says that the losses are “unrealized”, what it means is that they expect to lose that amount (as of the current exchange rates) as DITO makes its payments on its outstanding debt. The losses will be “realized” when the payments are made, and the foreign exchange difference is felt. It also means that the underlying exchange rates could continue to change to help DITO, or to hurt it even worse. Outside of that unsolved forex problem, Dito Tel’s operating losses are still growing, despite throwing a ton of new subscribers onto its network. While the headline will be distractingly bad, there are two things I liked from an administrative perspective. First, DITO actually referred to Dito Tel as “the Company’s largest investment” in the first paragraph of its Management Discussion section (the only change in the paragraph from Q1). Second, DITO revealed that its average revenue per unit (ARPU) for H1 was ₱81. ARPU is a basic telecommunications metric that measures the profitability of a company’s users, and this was the first time that DITO has publicly used this metric in its earnings reports. Is this a good result for DITO? No, but operations are not as bad as the headline losses could make you think. I mean, they’re not good. And DITO still has a massive amount of forex exposure risk, but the operating loss basically flatlined while going from 5 million subscribers at the start of Q1 to 9.6 million at the end of Q2. In a sea of red, that’s something to work with.
• [UPDATE] VistaREIT dividend was a combination of a special and regular Q2 dividend... The VistaREIT [VREIT 1.74 ▼0.57%] Investor Relations department confirmed to me that the VREIT Q2 div was actually a combination of a special dividend (₱112 million) from income generated from May 1 through June 14, and a regular dividend (₱45,100,616) from income generated in the final half of June, from June 15 through to VREIT’s listing on June 30. The IR department also updated VREIT’s occupancy rate to 97% (up from 91%), and its WALE to 4.1 years (down from 5.1 years).
  
  • MB: Thanks to the VREIT IR department for their quick response, and for wishing me good “VHealth”. Haha. Let’s forget about the “special” part of this dividend for a second, and just focus on the “regular” component to see how VREIT’s first dividend compares to its REIT Plan guidance of an 8.25% yield (based on the IPO offer price of ₱1.75/share). If the regular dividend represents (roughly) what shareholders get from half of a month’s distributable income (~₱0.006/share), then we could annualize this amount by multiplying it by 24 (the number of half-months in a year) to get a full-year dividend of ₱0.1443/share, which, at VREIT’s IPO price, represents an estimate annual yield of 8.24%, right in-line with VREIT’s guidance.
• [CORRECTION] JG Summit’s Q2 net income didn’t drop 95%... it went up 335%!... Yesterday, my headline reported that JG Summit [JGS 55.60 ▲1.00%] [link] had delivered a Q2 net income of only ₱44 million, which I said was a 95% drop from its Q2/21 net income of ₱815 million. That’s not even close to correct. My script took the “net income attributable” line from JGS’s 17Q earnings report instead of the “net income after taxes” line, and in a rush, I wasn’t critical enough of that to spot the mistake. My breakdown of the individual business units is still accurate, as is (I believe) my analysis of how exposed JGS is to inflation and the second-order effects of it, but my headline and the summary numbers about the quarter were just completely off. I called JGS’s quarter a “dog’s breakfast”, but maybe the real dog’s breakfast was my write-up, and JGS’s quarterly report was just more or less “fine”, but with several worrying points of vulnerability to continued inflationary pressures.
  
  • MB: I apologize to you all for my error. Thank you to Dom for sending me a message to ask some questions about my data. That got the process of discovery started. Some days, I feel like a guy surrounded by hundreds of scripts in various states of disrepair, but for some reason on this day I decided to just John Daly the results of my scripts (just “grip it and rip it”) without taking a closer look. Seems like my upcoming break will be the perfect opportunity for me to take a deep dive into my own Google Sheets logic and Python code. Don't feel bad for me, I love it so much. But sometimes I let myself live with ""mostly working"" code for too long, and this error tells me that I need to make a few improvements!
• [NOTES] Quick takes from around the market...
  
  • CTS Global [CTS 1.09 unch] [link] H1 net income up 74% y/y on unrealized foreign exchange gains. CTS said that its H1 global trading revenue fell 53% y/y to ₱28.3 million, and that its local trading revenue fell 46% to ₱20.2 million, for a combined drop of 41% y/y. While trading revenues are down, CTS noted that it had an unrealized foreign exchange gain of ₱44.2 million in H1 that saved its weak trading performance by boosting net income significantly. MB: I don’t think that any of CTS’s IPO investors were clicking “BUY” with the thought of sweet unrealized foreign exchange gains and income from low-risk government debt instruments dancing through their heads, but here we are. Remove the ₱44.9 million in foreign exchange gains from H1/22 and the ₱3.8 million in foreign exchange gains from H1/21, and the picture looks dramatically different: H1/22 core net income of ₱5 million, down 80% from its H1/21 core net income of ₱24.9 million. That’s abysmal. It’s even worse if we isolate for Q2: core net loss of ₱6.6 million, down 8,150% from its Q2/21 core net loss of ₱0.08 million.
  • COL Financial [COL 3.51 unch] [link] Q2 profit ▼57% y/y, ▼46% q/q, to ₱49 million, with 1H profit ▼71% y/y to ₱140 million. COL blamed the huge drop in profitability on a “significant drop in commission revenues”, and the lack of non-recurring revenue from the sale of financial assets in H1/22. COL saw an 8% increase in the number of new customer accounts, bringing its total to ~507,000, but noted a 9% drop in net customer equity to ₱102 billion. COL also noted that the PSE itself was down 13.6% during H1, and that the average daily turnover fell 16.6% y/y to ₱7.5 billion. MB: The previous year, COL’s H1 account growth was 23% y/y, and its net customer equity growth was 53% y/y. This year’s numbers are tiny in comparison. While overall market sentiment is important to COL's possible earnings, I don’t agree with COL trying to make some kind of “high bar effect” argument about the impact of its sale of financial assets in H1/21 somehow making its H1/22 look that much worse. The revenue COL recognized in H1/21 on the sale of those assets was just ₱55 million, which was just 6.7% of its total H1 revenue that year. Take those sales out, and COL still made ₱424 million in profit in H1/21, and its H1/22 performance is still 67% lower. If I were a COL shareholder, I’d be wondering why the company hasn’t done more to appeal to the masses that flocked to its system during the crypto frenzy and basurapalooza of late 2020 and early 2021.
  • AllDay Marts [ALLDY 0.35 ▼4.05%] [link] Q2 profit ▼19% y/y, ▲215% q/q, to ₱87 million, with 1H profit ▼94% y/y to ₱11 million, largely due to ₱170 million in losses related to the Alabang fire in January. Operationally, ALLDY noted a marginal 2.2% y/y improvement in H1 sales, but that was considerably less than the 20% y/y sales increase it noted last year. Finance costs were lowered 70% to ₱10 million due to “loan settlements” made using proceeds of ALLDY’s 2021 IPO. MB: Forget for a second that the fire never happened. I don’t know if I’m able to patch up the lost sales and opportunity cost of the ₱170 million spent on dealing with the lost inventory and damage to the property, but just dump that ₱170 back into the Q2 and H1 financials; nothing happens to Q2 (the fire was in Q1), but the H1 results actually improve so much, from down 94% to up 1% y/y. Yes, Q2 is still a “thing”; if we put the ₱170 million back into Q1, that puts the net income there up to around ₱95 million, and that leaves Q2 down 19% y/y and down 8% q/q. Not the best trend for a consumer-facing business in the midst of a consumer-facing business recovery, where the stock price is down 40% from its IPO price and down 25% since the start of Q2.

MB is written and distributed every trading day. The newsletter is 100% free and I never upsell you to some "iNnEr cIrClE" of paid-membership perks. Everyone gets the same! Join the barkada by signing up for the newsletter, or follow me on Twitter. You can also read my daily Morning Halo-halo content on Philstar.com in the Stock Commentary section, and in the Saturday edition of the Daily Manila Shimbun.

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Read today's full newsletter here

This will depend on a couple of different things.

• Type of strategy?

What timeframe are you trading? If you are a scalper your stop-loss will be closer than if you were trading on a higher timeframe. You also need to thoroughly backtest your strategy before knowing what works best for you. Not all pairs are created equal so you need to test this on your specific pair first.

• High or low risk?

Are you trying to multiply your account fast or consistently make small gains long-term? If you want to grow your account fast you can be risking a large percentage of your account, but you may want to risk less than 1% if your not looking for any significant drawdown on your account.
There is no clear answer here. It depends on you. However, I do share a video showing a strategy on the 1-minute timeframe with stop-loss, take-profit and percentage risked per trade. The market is always changing so these numbers may need to be adjusted. You can check out the video here. (Video)

Hi, I am in audit and the only thing that bothers me is how to test this? Can you share any tips on how to do this? A sample excel file or formula would be very helpful. Thank you!

Long story short, I traded Forex on an unregulated, offshore broker early this year. Even though they are not regulated, reviews and experiences of other people I know who trade Forex are good, so no issues there.
With them, I could only fund my account with BTC which they just convert to USD on their end. It was actually profitable in the beginning, but at the end, because of my inexperience, I was/still am down by a few grand.
Apparently, trading Forex on US-based, regulated brokers, I could have just filed my losses under Section 988 (this rule define all gains or losses from currency trading as ordinary income or losses).
Questions:

1. Can I claim my (income) losses even though the broker I used is offshore (does not submit any docs to the IRS)? I still have (almost) all the transaction logs as CSVs, including daily/monthly emails regarding open/closed trades and P/L.
2. Should I file this under Section 988?
3. Would the BTC-USD conversion on their end count as a taxable event, like a crypto swap? I bought BTC using a variety of KYC apps (Cash App, Coinbase, Coinbase Pro) and sent it to the broker directly.
4. Apparently, spot Forex and CFDs are filed differently. I am not exactly sure what I did to be honest (hence my "inexperience"). On the broker's website, it says they allow traders to do "high leveraged full STP/ECN CFD trading", but when I looked up the difference, it seems I was doing more of spot than CFD, so I am horribly lost.

• Here's an example trade I did, let me know if this is spot or CFD: On the EURUSD, I buy/go long 1 lot of EUR. I don't receive the actual EUR, and I have to close this trade sometime in the future. My account leverage is 1:500 (I know!), so if the market price goes down even just a little bit, it would start eating through my margin requirements and eventually I get margin called, the open trades I have with the highest margins start getting closed automatically, and then eventually I'm left with a couple bucks. Is this spot or is this CFD?

43M dxed with Multiple Sclerosis 2015, currently take Tysabri for my DMT. I just had my 12 infusion, the hair loss began this year. My mother has A very mild case of alopecia. The hair turns white and falls out in these spots. It looks like I have half a mustache. Wish I could include pics. Thank you in advance. My dermatologist appt is month. Just looking for some insight.
Edit: I did just have blood work done for thyroid issues, all was normal.

Hello tax redditors,
So about middle of last year I've lost around $4500 in a forex romance scam (yeah I know, purely genius move on my part...). My research has shown so far that I can deduct up to $3000 per year in capital losses. However what complicates things here is that the account was funded using crypto (purely as a vehicle to transfer the funds, as the site wouldn't let me use a credit card, about 95% of the crypto was purchased for the purpose of funding this account). Which to this end I've read as of 2019 lost/stolen crypto currency cannot be deducted as a capital loss.
What I'm looking to find out here is if:
a. can I actually claim the losses in this event as a capital loss?
b. what would I need to do to handle claiming as a loss? I have not recieved any forms from any of the exchanges as I haven't made very much crypto from the trades I have made (like <$50).
​
Thanks everyone!
TlDr; Lost ~$4500 in forex scam funded w/ Crypto, can I deduct as a loss?