$330 Million Bitcoin Stolen Without A Hack: How Is This Possible?

A recent, stunning crypto theft has once again shown us the vulnerability of even the most secure wallets. This time, however, there was no technical hack involved. The loot? A whopping $330 million worth Bitcoin (BTC). The executioner? An expert in psychological manipulation.

Manipulation as a method of attack

Blockchain detective ZachXBT discovered a suspicious transaction of 28 BTC on April 3.520, worth approximately $330,7 million. What makes this case extra poignant is the profile of the victim: an elderly American who had been in possession of this massive amount of BTC since 2017, without ever making any significant transactions.

What was it they said again? “Keep your friends close and your enemies closer.” This scammer held that wisdom in high regard. By communicating extensively and carefully, he slowly built up the victim’s trust. Eventually, this man was convinced over the phone to grant access to his wallet. It’s a classic example of social engineering, where people are targeted instead of hacked.

Smart methods for money laundering

After the theft, the money laundering began almost immediately. The attackers used the peel chain technique to split up the BTC and move it through hundreds of wallets and dozens of exchanges. They then converted a large portion of the stolen BTC into Monero (XMR), a privacy-focused cryptocurrency that is virtually untraceable due to its cryptographic structure. This led to a sudden 50 percent increase in XMR transactions, and let’s be honest: this was no coincidence.

Researchers found that the funds were moved via instant exchanges, mixers, and DeFi platforms. The accounts used for this were clearly created in advance, indicating a very well-planned operation. To top it all off, parts of the funds were even sent via bridges to Ethereum.

The aftermath and lessons

Despite the efforts of Binance, who together with ZachXBT managed to freeze approximately $7 million, the majority of the funds remain unaccounted for. Major crypto hacks are often quickly linked to the North Korean Lazarus group, but the modus operandi in this case differs significantly from their usual strategy. In fact, ZackXBT ruled out the North Korean hackers almost immediately. The main suspect, who goes by the alias “X,” reportedly lives in the UK and has Somali roots. His accomplice, “W0rk,” has also disappeared from the radar.

The investigation involves blockchain forensics firms and exchanges, but this incident highlights a painful truth: human weakness often remains the weakest link in crypto security. Even the best hardware wallets and strong passwords offer no protection when trust is abused.

So, look around you! In the world of crypto, the challenge is not just the technology, but the people behind it. How well are you protected?

Frequently Asked Questions

Why is this theft so exceptional?
The theft was committed through social engineering, where the scammer managed to gain the victim's trust instead of using technical hacks.

What is the peel chain technique?
This is a method of splitting up stolen crypto and moving it through multiple wallets and exchanges, making it more difficult to trace.

What can I do to secure my crypto wallet?
Make sure that you not only apply technical security measures, but also be vigilant for manipulations and always trust your intuition. Think carefully about who you grant access to!