Gross Losses Don't Tell the Whole Story: Crypto Hack Financial Impact

The crypto industry has been plagued by record-breaking hacks this year, but a closer look at these incidents reveals that simply reporting the initial loss may not give a complete picture of the financial damage.

Two major breaches in September stand out: one at Bitget and another on Liquid Network. At first glance, both seemed to result in significant losses, $351.6 million for Bitget and close to 4,000 BTC (worth approximately $137 million) for Liquid Network.

However, as the cases unfolded, it became clear that the financial outcomes were far from identical. In the case of Liquid Network, the attacker returned 3,400 BTC on September 7 after communicating with the project's team. This left around 602 BTC subject to recovery efforts.

The distinction between initial loss and final damage is crucial in understanding the true extent of a hack's financial impact. Simply reporting the gross loss may downplay the severity of the security failure, as assets can be returned or frozen, reducing the ultimate financial burden.