Blockchain sleuth ZachXBT revealed that the victim of the recent theft of $330 million in Bitcoin (BTC) was an elderly American citizen who was targeted by a social engineering attack.
The exploit marks one of the largest known crypto thefts from an individual. ZachXBT traced the stolen 3,520 BTC, worth approximately $330 million, to a suspicious transaction executed over the weekend.
Attackers moved the funds out of the victim’s wallet, routed them through at least six centralized exchanges, and ultimately converted the Bitcoin into Monero (XMR), a privacy-focused crypto known for obscuring transaction trails.
The swap caused a 50% spike in Monero’s price due to thin liquidity and high volume.
Social engineering attack
The onchain investigator attributed the incident to social engineering, a type of fraud where attackers manipulate victims into handing over wallet access by exploiting human trust rather than technical vulnerabilities.
ZachXBT noted that the stolen Bitcoin originated from “interesting sources,” suggesting the funds may have been held for years or acquired through early, less-documented transactions.
Social engineering attacks have become increasingly common in the crypto space, especially against high-net-worth individuals.
Unlike protocol-level exploits, these schemes rely on deception, often via phishing emails, fake support channels, or impersonation, to obtain private keys or recovery phrases.
Regulatory concerns
The theft eclipsed all other crypto losses reported this month. Before ZachXBT’s disclosure, blockchain security firm Immunefi had recorded $92.5 million in April losses from various exploits and scams.
With this single incident, the month’s total now exceeds $420 million, adding new urgency to calls for stronger user protection and exchange oversight. The laundering process, which spanned multiple exchanges, raised fresh questions about industry compliance gaps.
US regulators have pressured trading platforms to strengthen Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, but high-profile cases like this suggest enforcement remains inconsistent.
So far, no US law enforcement agencies have publicly acknowledged an investigation. However, the use of regulated exchanges and the scale of the crime are likely to trigger federal attention.
ZachXBT continues to monitor the flow of funds and has called on platforms to identify any accounts involved in the laundering process.
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