An exchange removing a token from trading and requiring holders to withdraw it, or converting it to another asset, by a deadline.
Withdrawing a delisted token to your own wallet is a transfer, not a sale. An exchange that automatically converts the token to a stablecoin or another asset has executed a sale on your behalf, which is a disposal at the conversion price. A token you cannot withdraw or sell may become a worthless-asset loss.
Not by itself. A forced conversion by the exchange is a sale; a withdrawal is a transfer; an asset left stranded may support a worthless-token loss.
Source: IRC 1001; IRC 165
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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