- Single victim lost over $282M in BTC and LTC through a hardware wallet social engineering scam.
- Stolen assets were swapped into Monero and bridged across chains using Thorchain.
- Theft occurred amid modest crypto market gains, despite lower reported exploit losses in December.
A large-scale cryptocurrency theft linked to a social engineering attack has drawn attention after on-chain investigator ZachXBT disclosed that a single victim lost more than $282 million in digital assets earlier this month.
According to ZachXBT, the incident occurred around 23:00 UTC on Jan. 10, 2026, and involved Bitcoin (BTC) and Litecoin (LTC) held in a hardware wallet. In a post on X, he said the victim was deceived through a social engineering scam, resulting in the unauthorized transfer of approximately 2.05 million LTC and 1,459 BTC.
At the time of disclosure, the combined value of the stolen assets exceeded $282 million based on present market prices. ZachXBT identified several addresses linked to theft, noting that they collectively held the full amount of the stolen Bitcoin and Litecoin.
Asset Movement and Use of Privacy Tools
Following the theft, the attacker began moving the assets across multiple networks. ZachXBT reported that a large portion of the stolen BTC and LTC was converted into Monero (XMR) through several instant exchange services. The volume of conversions coincided with a sharp, short-term spike in Monero’s price as liquidity absorbed the inflows.
In addition to the conversions, part of the Bitcoin was bridged using Thorchain, a cross-chain liquidity protocol. ZachXBT said the BTC was transferred to other blockchain networks, including Ethereum, Ripple, and Litecoin, as part of the asset movement process.
Related: On-Chain Sleuth ZachXBT Declares Crypto Is in a “Crime Supercycle”
Market Context at the Time of the Incident
The theft took place during a period of limited gains in major cryptocurrencies. On the day of the incident, Litecoin traded at approximately $74.57, up 3.6% over 24 hours. Bitcoin was priced near $95,512, up about 0.2% over the same period, according to CoinGecko data cited in reports.
The incident was disclosed as blockchain security firms continued to track trends in crypto-related losses. PeckShield reported that total exploit losses fell to roughly $76 million in December 2025, compared with $194.3 million in November.
Despite the month-over-month decline, the firm said overall incident activity remained elevated. ZachXBT’s disclosure adds to a growing list of high-value thefts attributed to social engineering tactics rather than technical vulnerabilities, based on the details he shared.
Related: Crypto Investigator ZachXBT Warns of a Fake Hyperliquid App on Google Play Store
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
