A recent case of Bitcoin theft worth $330 million has drawn attention to the issues of social engineering within the cryptocurrency sector. Experts assert that this was not a technical hack, but rather an application of psychological manipulation.
Overview of the Heist
Blockchain analyst ZachXBT revealed that the victim was an elderly US citizen who was manipulated into disclosing access to their crypto wallet. On April 28, 2025, a suspicious transfer of 3,520 BTC was detected, valued at $330.7 million. The investigation revealed that the stolen funds were quickly laundered through over six instant exchanges.
Laundering Methods Used
After the theft, the attacker employed a peel chain method, breaking the stolen amount into smaller, harder-to-trace portions. Significant amounts were laundered through instant exchanges and converted into Monero, a privacy coin with untraceable architecture. Usage of pre-registered accounts across exchanges indicates careful planning. Some BTC was even bridged to Ethereum and used on various DeFi platforms.
Social Engineering in Crypto
Social engineering is a manipulative technique used by cybercriminals to extract confidential information. Often, fraudsters impersonate trusted figures, create urgency, or offer fake gifts to convince victims to provide access to their assets. Unlike traditional hacks targeting system vulnerabilities, social engineering exploits human weaknesses such as trust and fear.
The case of the $330 million theft highlights the critical importance of securing cryptocurrency assets. Crypto users must be aware of social engineering tactics and actively protect their holdings.
