"is there anything else that I am missing?"

TCJA of 2017.

"The Impact of the Tax Cuts and Jobs Act on Casualty and Theft Losses

According to the IRS's publication 547 "Casualties, Disasters, and Thefts," "Personal casualty and theft losses of an individual sustained in a tax year beginning after 2017 are deductible only to the extent they're attributable to a federally declared disaster."3 By extension, this means human activities, such as terrorist attacks, theft and vandalism that are not declared federal emergencies by the President are also not covered."

Under what condition would the theft be deductible. in other words. It doesn't seem, for instance, that the money was "rolled" into a bogus investment.