Victim Loses $91M in Bitcoin in Social Engineering Scam: ZachXBT

A fraudster posing as a hardware wallet support agent tricked the target into handing over wallet credentials.

What to know:
After an attacker impersonated hardware wallet support, a social engineering scam resulted in a 783 BTC loss for the victim. The stolen funds were funneled through multiple deposits into Wasabi Wallet, a privacy tool used to mask transaction trails.
The hack came exactly one year after the $243M Genesis creditor theft, underscoring ongoing vulnerabilities in crypto security

On Thursday, blockchain sleuth ZachXBT discovered a well-known social engineering attack in which the victim lost 783 BTC, or approximately $91.4 million. The scam occurred on Aug. 19 and involved the attacker posing as a support agent for a hardware wallet before duping the victim into handing over wallet credentials.

The attack is similar to a series of attempts at social engineering that have taken place over the course of the past year. It also adds to a year that has already been awful for hacks and scams, with crypto investors losing $3.1 billion in the first half of 2025.

Once the malicious transfer was made, the funds began their journey through a typical laundering process, with multiple deposits made into Wasabi Wallet, a privacy tool commonly used to obfuscate the trail.

The hack occurred exactly one year after the $243 million Genesis creditor theft, a landmark event that sent ripples across the industry and led to the arrest of 12 people in California in May.

How to protect yourself from social engineering attacks

To protect your cryptocurrency, follow these important rules: Verify every request: Even if a request looks legitimate, never trust anyone who asks for sensitive data or financial transactions.

✅ Use a multi-sig wallet – large transfers require multiple confirmations.
✅ Avoid sharing too much information online – scammers search for victims via social media and forums.
✅ Be suspicious of “urgent” requests – pressure and urgency are red flags.
✅ Regular security audits – review your wallet’s security and access permissions frequently.

Why is social engineering so dangerous in crypto?

Unlike traditional finance, crypto transactions are irreversible. Once your Bitcoin leaves your wallet, there is no bank or support team to reverse that transfer. This is why social engineering is a perfect weapon for scammers.

And this is a harsh truth:

Even the most secure wallets cannot protect you from decisions made under any kind of manipulation.

Final Thoughts

This $91M Bitcoin loss isn’t just a headline—it’s a lesson for every crypto investor. Technology can only protect you so much. At the end of the day, your awareness and caution are the best security tools you have.

Stay safe, stay alert, and never let trust cost you your fortune.

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