A new wave of blockchain crimes: how hackers steal millions through social engineering

In January 2026, the cryptocurrency world witnessed one of the most significant thefts ever documented, when digital criminals stole $282 million through sophisticated psychological manipulation techniques. This incident marks a concerning turning point in cybersecurity threats within the blockchain sector, highlighting how hackers are abandoning traditional technical attacks to focus on increasingly effective social engineering methods.

The January heist: $282 million disappeared in a few hours

The victim suffered a devastating loss: 2.05 million Litecoin and 1,459 Bitcoin, totaling a shock to the cryptocurrency market. According to blockchain analyst ZachXBT, the attack was orchestrated on January 10 at 23:00 UTC with military precision. The criminals exploited social engineering techniques to access the victim’s hardware wallet, completely bypassing technical protections.

What makes this theft particularly interesting from an investigative perspective is the speed of fund conversion. Within a few hours, most of the loot was converted into Monero (XMR), a privacy-focused cryptocurrency. This move had measurable effects on the markets: the price of XMR surged 70% in the four days following the theft, indicating a massive flow of capital into privacy-oriented coins.

To gauge the current value of these assets, as of January 31, 2026, Bitcoin trades at $77.92K, Litecoin at $58.41, while Ethereum (ETH) stands at $2.39K and Ripple (XRP) at $1.60. These data highlight how blockchain crimes continue to target highly liquid and tradable assets.

The obfuscation strategy: from Thorchain to parallel blockchains

Researchers tracking the movement of funds uncovered a sophisticated dissimulation strategy. A significant portion of the Bitcoin was transferred through the Thorchain protocol, a decentralized bridge that enables cryptocurrency exchange between different blockchains. The criminals used this infrastructure to move part of the loot toward Ethereum, Ripple, and Litecoin, creating a maze of digital traces difficult to follow.

ZachXBT clarified that there are no indications of involvement by North Korean threat actors, thus excluding links to sophisticated state-sponsored cybercriminal groups. This suggests that the hackers behind the theft operate according to private criminal logic, potentially as part of an organized network of digital criminals specializing in cryptocurrency thefts.

Social engineering becomes the main attack vector in 2025

The January incident fits into a broader context of increasing social engineering attack prevalence. A social engineering attack typically follows a precise pattern: the criminal impersonates a trusted employee, gains the victim’s trust, and induces them to reveal sensitive information such as private keys or access credentials. It does not require sophisticated technical skills but rather superior manipulative abilities.

Security analysts have identified this methodology as the primary attack vector for 2025, surpassing attempts to exploit software vulnerabilities. Criminals find it more effective to convince someone to voluntarily relinquish control of their wallet than to try to force security systems. This strategic shift represents a paradigm change in blockchain crimes.

Ledger, the data breach, and the broader security landscape

Just five days before the massive theft, on January 5, hardware wallet provider Ledger announced a data breach. Unauthorized criminals gained access to Ledger users’ personal information, including names and contact details. Although Ledger did not confirm a direct link between the data breach and the January theft, the close timing raised questions within the community about a possible correlation between data exposure and subsequent attacks.

Hackers may have used the compromised Ledger information to identify high-value potential victims and then apply targeted social engineering techniques. This scenario illustrates how seemingly separate breaches can fuel a chain of security incidents.

What it means for cryptocurrency holders

Whether the victim was an individual with significant holdings or an institution, the incident highlights critical vulnerabilities in digital wallet security models. No hardware wallet, no matter how robust, can fully protect against social engineering if the individual is sufficiently manipulated. The human key remains the weakest link in the security chain.

Hackers will continue to exploit this vulnerability as long as it exists. 2025 is shaping up to be a year where awareness and education about security become more important tools than technology itself in safeguarding digital assets.