$91 Million Bitcoin Heist: A Social Engineering Nightmare

A cryptocurrency investor recently lost a staggering $91 million worth of Bitcoin (783 BTC) due to a sophisticated social engineering scam. Blockchain investigator ZachXBT revealed the details of the attack, highlighting the ever-present danger of phishing and impersonation in the crypto space.

The victim was reportedly targeted by individuals posing as customer support representatives from both a hardware wallet manufacturer and a cryptocurrency exchange. The specific companies impersonated were not disclosed.

Following the theft, the stolen funds were traced to Wasabi Wallet, a Bitcoin mixer known for its privacy features (which has ceased operations for US users). The funds were then “peeled off” across multiple digital wallets, further obscuring their origin.

This incident mirrors a similar attack from a year prior, where three individuals allegedly stole 4,064 BTC (worth $243 million at the time) using similar tactics. Two suspects were later arrested in Florida after splurging on luxury goods and real estate. Their method involved impersonating Google support team members to manipulate the victim’s two-factor authentication settings.

Social engineering attacks can range from simple SIM swapping to elaborate impersonation schemes. The FBI has warned about these tactics, including impersonating employees and using call forwarding and phishing campaigns to gather sensitive information.

Even job seekers are vulnerable. One scam involved a fake crypto company created by the hacking group Crazy Evil, luring applicants into downloading wallet-draining malware.

Key Takeaways

• Be Vigilant: Always double-check the authenticity of any communication, especially from supposed support representatives.
• Verify: Independently verify any requests related to your wallets or exchange accounts through official channels.
• Secure Your Accounts: Use strong, unique passwords and enable two-factor authentication (and consider hardware-based 2FA).
• Be Wary of Unsolicited Contact: Exercise extreme caution when interacting with anyone who reaches out unexpectedly.

Recent Market Performance

As of the report, the price of Bitcoin had fallen in recent days, with the 783 BTC now worth approximately $88 million. Traditional markets are also displaying mixed results, with slight downturns in the S&P 500, Dow 30 and Nasdaq. Top gainers include XPeng Inc., Telix Pharmaceuticals Limited, and Full Truck Alliance Co. Ltd, while top losers are Hesai Group, Bitmine Immersion Technologies, Inc. and WW International, Inc.