$282 Million Stolen in Bitcoin and Litecoin Due to Hardware Wallet Scam

Summary:
On January 10, a crypto holder lost over $282 million in Bitcoin and Litecoin due to a social engineering scam involving a hardware wallet. This significant theft is among the largest individual crypto heists recorded in 2026. Following the breach, the attacker began laundering the stolen assets through various exchanges, significantly affecting the price of Monero.

Key Takeaways

Losses: Over $282 million was stolen from a holder's hardware wallet on January 10, 2026.
Method: The theft involved social engineering tactics that tricked the victim into compromising their wallet.
Laundering: The hacker laundered the stolen funds through instant exchanges, impacting Monero's price significantly.
Ongoing Threat: This incident is part of a wider campaign targeting cryptocurrency wallets across EVM-compatible chains, draining hundreds of wallets.
User Caution: Hardware wallet users should verify all communications through official channels and avoid entering sensitive information on unknown websites.

$282 Million Stolen in Bitcoin and Litecoin Due to Hardware Wallet Scam

A Massive Theft Unfolds

On January 10, over $282 million worth of Bitcoin and Litecoin was stolen from a crypto holder through a sophisticated social engineering scam that exploited a hardware wallet, as reported by blockchain investigator ZachXBT. The theft took place around 11 PM UTC and ranks as one of the largest individual crypto heists of 2026.

The attacker quickly initiated laundering the stolen assets via multiple instant exchanges, converting both Litecoin (LTC) and Bitcoin (BTC) into Monero (XMR). This large-scale conversion caused Monero's price to surge sharply as millions in stolen funds were processed. Additionally, Bitcoin was transferred to Ethereum (ETH), Ripple (XRP), and Litecoin networks via Thorchain to obscure the transaction trail.

The Mechanics of Social Engineering Attacks

Hardware wallets are generally seen as one of the safest ways to store cryptocurrencies, as private keys remain secure within the physical device. However, social engineering attacks can effectively bypass this security by tricking victims into compromising their own wallets.

Investigation by ZachXBT

While the specific tactics used in this $282 million scam haven't been detailed, common methods in hardware wallet scams include phishing websites designed to steal seed phrases or impersonating customer support from legitimate wallet companies. ZachXBT's investigation traced the stolen funds as they moved across various blockchains and exchanges, with Thorchain facilitating the distribution of stolen Bitcoin across Ethereum, Ripple, and Litecoin networks.

A Wider Campaign Against Wallets

This massive theft is the largest single incident in a broader assault on cryptocurrency wallets across EVM-compatible chains. ZachXBT reported that hundreds of wallets were targeted, and drained in early January through ongoing malicious activities.

The broader campaign aimed at various wallets resulted in many smaller thefts, with most individual losses being under $2,000 per victim. Although these thefts might seem minor on their own, the cumulative impact has led to significant total losses as the attacks have continued. In December 2025, the crypto sector faced about 26 major exploits, leading to total losses of approximately $76 million, a sharp drop from $194.27 million in November.

Data from January suggests that exploit activity may be rising again, highlighted by the recent hardware wallet theft and the ongoing campaign against wallets.

Currently, hardware wallet manufacturers have not issued specific warnings regarding the recent social engineering schemes. It’s crucial for users to confirm all communications that appear to come from wallet companies through verified official channels and to never enter their seed phrases on unfamiliar sites.