On Friday, September 18, 2026, Bloomberg Tax reported that an Ohio man who lost more than $820,000 in a cryptocurrency “pig butchering” scam has withdrawn his lawsuit seeking a tax refund from the IRS.
Shane Vaia voluntarily dismissed the case without prejudice in a filing submitted Thursday in the U.S. District Court for the Southern District of Ohio. He is covering his own attorneys’ fees as part of the dismissal. Vaia had sought a refund of more than $130,000 in taxes paid for the 2024 tax year.
In his original complaint, Vaia said he was deceived into investing in a cryptocurrency platform that turned out to be fake, and that the platform vanished when he attempted to withdraw his money.
“Pig butchering” refers to a growing category of online fraud in which scammers build trust with victims or show them fabricated investment returns before disappearing with their funds, according to the U.S. Secret Service.
Vaia had argued he should be permitted to deduct his theft losses from his taxable income. However, a 2017 tax law change significantly restricted the ability of scam victims to claim such deductions.
Vaia was represented by Tax Workout Group P.A. The case is Vaia v. United States, S.D. Ohio, No. 2:26-cv-00573.
Source: Bloomberg Tax
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