A California couple is challenging the IRS in US Tax Court, saying they are entitled to a deduction after losing nearly a million dollars in a crypto scam.

George and Julie Fry of San Carlos, Calif., are challenging the IRS’s assertion that they owe the agency almost $400,000 in taxes and penalties, according to an April 16 petition.

The Frys said they thought they were buying the cryptocurrency TASE via a trading platform called SBIcoin. However, after watching the value of TASE skyrocket and then trying to withdraw their investments, SBIcoin subsequently disappeared along with all of the $958,540 …