Bitget Hack Exposes Tax Loophole for Crypto Losses

The crypto exchange Bitget reported an unauthorized hack on September 24, 2026, resulting in a loss of $351.6 million, later revised to $387.5 million.

This raises questions about tax implications for those affected in Germany.

Under the German Income Tax Act, a loss from a hack is not considered a disposal transaction and therefore cannot be claimed on a tax return.

The law firm Hortmann Law explains that theft does not meet the test of an asset changing owner for consideration, which is required for a disposal transaction.