A single wallet holder lost more than $282 million worth of Bitcoin and Litecoin on January 10 after falling victim to a sophisticated hardware wallet scam, according to on-chain investigator ZachXBT.
The incident took place around 11 pm UTC and ranks among the largest individual thefts ever recorded. Shortly after gaining access, the attacker began moving the funds through instant swap services, converting large portions into Monero. The sheer size of these swaps caused a noticeable spike in Monero’s price as hundreds of millions flowed through the network.
To further muddy the trail, Bitcoin was routed across multiple blockchains using Thorchain, spreading assets into Ethereum, XRP, and Litecoin ecosystems before final conversions.
While hardware wallets are designed to keep private keys offline, these protections can be undermined when users are tricked into handing over access themselves. In this case, the exact method hasn’t been confirmed, but similar scams often involve fake support teams, cloned websites asking for recovery phrases, or deceptive update prompts.
ZachXBT linked this case to a broader wallet-draining campaign seen throughout January, affecting hundreds of users across multiple chains. Most victims lost relatively small amounts, often under $2,000, but the scale of activity suggests a coordinated effort.
The January theft follows a quieter December, when total losses from major exploits dropped sharply compared to November. Early signs now suggest activity is picking up again, with this case standing out as a stark example of how costly social engineering attacks can be.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
