Pyramid scheme loss?

[sdarave]

Client formed a business in 2017 and invested 24K in an internet scheme to provide "training" for office software. The internet training company has been shut down by the FTC, Client funds and investment are locked down. Any Ideas for claiming his loss? I originally amortized his investment over 5 years, wondering if I should continue to take the amortized amount....
Suggestions greatly appreciated!
St.

[Burke]

"Locked down" but not forfeited? Must wait for final determination of loss, but I would cease to amortize, I think. If he receives monies as a refund, it would be reportable as income to the extent it was deducted.