Bitcoin and Litecoin Hardware Wallet Scam Exposed as $282 Million Stolen

Blockchain investigator ZachXBT disclosed a major cryptocurrency theft involving Bitcoin and Litecoin, revealing that a single victim lost more than $282 million earlier this month. The incident, shared through his official Telegram account and amplified by Wu Blockchain, ranks among the largest crypto scams reported so far this year globally.

The theft took place around 23:00 UTC on January 10, according to ZachXBT. It was noted, however, that the broader market was trading higher, with Bitcoin at $95,512 and Litecoin at $74.57. Despite the modest market movement, the magnitude of the theft quickly caught the attention of the industry.

Bitcoin and Litecoin Rapidly Moved Across Networks

Following the breach, the attacker quickly moved the stolen Bitcoins and Litecoins across various networks. ZachXBT explained that some of the funds were bridged into the Ethereum, Ripple, and Litecoin networks using the Thorchain network. Cross-chain transactions make it even more difficult for the funds to be traced, as the criminal funds are split and layered across various networks within minutes.

As shared in a post by Wu Blockchain, at the time of the disclosure, the addresses reportedly containing the stolen amount of BTC and LTC stood at approximately 1,459 Bitcoin and 2.05 million Litecoins. 

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Monero Conversions Trigger Market Reaction

Shortly after the transfers, large amounts of Bitcoin and Litecoin were converted into Monero using multiple instant exchanges. According to ZachXBT, the sudden increase in conversions caused Monero’s price to spike, proving that illicit activity, even if substantial, has the ability to move markets, especially during periods when there is low market activity.

Monero rallied sharply, briefly reaching a new high near $800 before pulling back. At last report, XMR traded around $670, remaining significantly elevated.

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