ZachXBT revealed: $282M assets were attacked by social workers, and hardware wallets were difficult to protect

ImpermanentLossFan · 2026-01-30T00:01:48+00:00

On-chain analyst ZachXBT revealed that a crypto user lost $282M in digital assets due to a social engineering attack, emphasizing that hardware wallets are not absolutely secure, and the core protection lies in private keys and recovery phrases. By obfuscating the flow of funds, attackers use cross-chain protocols to transfer assets, reminding users to remain vigilant and handle private keys with caution.

ImpermanentLossFan

2026-01-30 00:01:48

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A recent investigation by on-chain analyst ZachXBT has shed light on a significant security incident: a crypto user lost $282M in digital assets in a well-orchestrated social engineering attack. This case once again serves as a reminder to the entire community that even using “cold storage” schemes like hardware wallets is not completely safe – critical vulnerabilities often come from human factors.

How attackers can break through hardware wallet defenses

According to ZachXBT’s on-chain tracking, the attackers employed precise social engineering tactics to successfully induce victims to compromise their private keys or recovery phrases. This suggests that the physical isolation advantage of hardware wallets may fail in the face of advanced deceptive tactics. After the victim’s BTC and LTC outflows, the attackers immediately converted some of the funds into XMR (Monero), trying to break the tracing of funds through its privacy features. This has led to significant fluctuations in the XMR price.

Technical means of cross-chain transfer of hidden traces

More notably, attackers used cross-chain trading protocols like THORChain to obfuscate the flow of funds. ZachXBT discovered that the attackers had successfully transferred 818 BTC through the platform, which were subsequently exchanged for various assets such as ETH, XRP, and LTC. This multi-chain decentralization strategy makes tracking extremely difficult and reflects the risks of cross-chain infrastructure when misused.

How to protect your private keys and assets

This incident is a wake-up call for all crypto users. No matter what wallet scheme you use, the core line of defense is always your recovery phrase (seed phrase). Never share those 12 or 24 words with anyone under any circumstances – this is the only way for an attacker to gain access to your assets. Additionally, be cautious of inducements and requests from strangers, and remain vigilant when using hardware wallets.

BTC-5,67%

LTC-7,04%

ETH-9,92%

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