Is MTGOX Civil Rehabilitation Claim Reportable on FBAR and IRS Form 8938?

Reporting requirements for foreign assets IRS Form 8938: If the value is over $50,000 at year-end or exceeds $75,000 during the year. FinCEN FBAR: Can be reported if it goes over $10,000 at any point in the calendar year. 1. What’s the market value for the MTGOX claim? I’ve had a hard time finding the Tokyo Court’s disclosure to help me figure out the market value. Michael Hourigan from Fortress Investment Group mentioned that creditors will get around 14% of BTC. He’s also willing to buy the claim at a discount. So, does this 14% figure or Hourigan's offer give us the market cash value? 2. Is the civil rehabilitation claim something I need to report on FBAR and Form 8938? According to FinCEN’s FBAR guidelines, a financial account encompasses various forms like securities, savings, or checking accounts held with financial institutions. It also includes commodity futures, options, cash value insurance policies, annuities with cash value, and mutual fund shares available to the public with regular valuation and redemption practices. For IRS Form 8938, a foreign asset consists of any interest in a foreign entity, like a foreign estate or trust. Based on the resources I’ve seen, cryptocurrencies...

very interesting question. i believe the claim is not reportable on either form, based on how the IRS defines "financial interest". https://www.irs.gov/pub/irs-utl/IRS_FBAR_Reference_Guide.pdf basically, it comes down to whether you are the owner of record, holder of legal title, or have signature authority over specific types of foreign accounts. in this case, you are merely a claimant and you have had no receipt of money in, or access to the trust. the account is not yours. this page details most of the situations where you would have a reportable foreign account: https://www.greenbacktaxservices.com/blog/determining-need-file-fbar-form-8938/

Just my insight about this one if someone bought the claim and the affected people will be receiving cash for their recovered Bitcoin then it won't be taxable in any circumstance since it is not counted as income. But if you will be receiving Bitcoin directly I think it will still fall under capital gains from which I don't know how it will work since you will only receive the partial amount stolen from you and maybe you forgot what was the market value when you have bought Bitcoin during that time. Maybe just a big maybe they will just set a fixed price during that time before Mt. Gox got hack and your capital gains will be based from there. Again this are just my insights in this scenario and I haven't considered if partial recovered assets are exempted from taxes in the US.