Crypto user loses $282M after Trezor support impersonation

A crypto holder lost more than $282 million in Bitcoin and Litecoin in what appears to be one of the largest social engineering incidents reported in the sector. The theft occurred on Jan. 10, 2026, at approximately 11:00 pm UTC after the victim disclosed a hardware wallet seed phrase to someone posing as Trezor support, according to blockchain analyst ZachXBT. The attacker subsequently took control of the wallet and quickly dispersed the assets across multiple networks to hinder tracking.

ZachXBT reported that 2.05 million Litecoin (LTC), valued at about $153 million, and 1,459 Bitcoin (BTC), worth roughly $139 million, were withdrawn. The perpetrator began converting the stolen funds into Monero (XMR) through several instant exchange platforms, a sequence that coincided with a sharp rise in XMR’s price.

Concurrently, significant portions of the Bitcoin were moved across Ethereum (ETH), Ripple (XRP) and Litecoin via THORChain, enabling cross-chain transfers without centralized exchanges. The activity renewed discussion about the risks of decentralized cross-chain infrastructure during large-scale thefts.

Users slam THORchain for allowing hacker to shift funds. Source: Quit

$700K of stolen funds frozen

In a LinkedIn post on Friday, security firm ZeroShadow said it monitored and flagged parts of the illicit flows in real time after alerts from blockchain surveillance teams. Within about 20 minutes, approximately $700,000 was reportedly frozen before it could be fully converted into privacy-focused assets.

ZeroShadow said the victim was tied to a Bitcoin address “belonging to an individual who had been tricked into sharing their seed phrase by an actor impersonating Trezor ‘Value Wallet’ support.” Separately, ZachXBT dismissed suggestions that the operation was conducted by a state-sponsored group, writing, “It’s not North Korea.”

Elderly US Bitcoin holder loses $330 million

In a separate incident last year, an elderly U.S. individual reportedly lost $330 million in Bitcoin in another major social engineering case. Blockchain data indicated the person had held more than 3,000 BTC since 2017 with minimal prior activity. After the transfer, the attacker laundered the funds using peel chains and multiple instant exchanges, ultimately converting a substantial portion into Monero to obscure the trail.