Lionsgate Launches Section 165 Service for Crypto Scam Losses

Lionsgate Intelligence Network launches a free calculator estimating potential Section 165 tax relief, plus an evidence service supporting CPA review of theft-loss deductions.

TEL AVIV, Israel, Sept. 22, 2026 /PRNewswire/ -- Lionsgate Intelligence Network, a blockchain forensics and fraud investigation firm, today launched a free Section 165 calculator and evidence service for victims of crypto scams and investment-related fraud, including fake investment platforms, wire fraud and brokerage account compromises.

The launch comes as consumers lost more than $1 trillion to scams in 2024, according to the Global Anti-Scam Alliance (GASA). Even when funds cannot be recovered, eligible investment-fraud losses may qualify for Section 165 tax relief.

The calculator estimates a potential deduction's tax impact. Clients who proceed receive a CPA-ready package documenting the loss, transaction purpose, alleged theft and recovery prospects. For taxpayers filing on extension, October 15 is the deadline to report a theft loss on Form 4684 for its discovery year, provided no reasonable prospect of recovery remains.

The service follows IRS Chief Counsel memorandum 202511015, released March 14, 2025, which explains that losses may qualify when the conduct is theft under state law, the transaction was entered into for profit and no reasonable prospect of recovery remains. Section 165 is not limited to cryptocurrency: qualifying losses may involve U.S. dollars or other property transferred by wire, brokerage account, payment app or another channel.

"At Lionsgate, we support individuals and companies targeted by crypto scams and other investment-related fraud, as well as the CPAs helping them navigate the aftermath," said Bezalel "Eithan" Raviv, Founder and CEO of Lionsgate Intelligence Network. "We investigate what happened, organize transaction records, document recovery efforts and assess whether recovery remains reasonably possible. This provides victims with a clear, evidence-based path forward and gives CPAs the factual foundation they need to independently evaluate a potential Section 165 theft-loss tax deduction."

The service provides a financial investigation that may fall outside a CPA firm's traditional tax-preparation work. Users complete a questionnaire covering the scam, assets transferred, transaction purpose and recovery efforts. Lionsgate organizes transaction histories, communications, account records and forensic findings. Crypto cases may include blockchain tracing; wire-transfer and brokerage cases use corresponding financial records.

The package gives the tax professional a documented factual record for independently evaluating Section 165 eligibility and preparing the return. The free calculator creates no obligation to purchase services.

"After 23 years leading the FBI's IC3, I know law enforcement cannot possibly give every victim the individual attention they need," said Donna Gregory, Head of Lionsgate's U.S. Law Enforcement Task Force and former Unit Chief of the FBI's Internet Crime Complaint Center. "Lionsgate Intelligence Network fills that gap with advanced forensics, actionable evidence and expert guidance to pursue recovery and explore potential tax relief."

Lionsgate is actively seeking referral partnerships with CPA firms and other companies serving clients affected by crypto scams and investment fraud. For partnership inquiries, contact Liron Azrad at [email protected].

Media Contact:
Liron Azrad
[email protected] 

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SOURCE Lionsgate Intelligence Network