Bitcoin News Today: Cold Wallet Compromised by Fake Cop in $2.8M Crypto Scam

A major cryptocurrency heist has been uncovered in the United Kingdom, with a $2.8 million Bitcoin wallet drained following a sophisticated scam orchestrated by an individual impersonating a senior law enforcement official. North Wales Police confirmed that the victim was contacted by a scammer posing as a UK police officer who claimed to have discovered the victim’s personal identification documents on the phone of an arrested individual. This narrative was leveraged to instill fear and urgency, compelling the victim to log into their cold storage wallet using a phishing link provided by the scammer [1].

The victim, believing the communication to be legitimate, entered their seed phrase into a sophisticated fake website, which provided the scammer with full access to the wallet. Within moments, the attacker transferred the entire $2.8 million in Bitcoin from the wallet. The police have described the incident as a “highly targeted and advanced scam,” noting that the victim may have been identified through a data breach, enabling the scammer to craft a highly personalized and convincing social engineering attack [2].

North Wales Police emphasized that the scam highlights a troubling new trend in the cryptocurrency space. Scammers are increasingly targeting long-term crypto holders who use cold storage devices—hardware wallets designed to offer enhanced security. In this case, the scammer exploited the victim’s trust in law enforcement to bypass what is traditionally a secure setup. Authorities have stressed that police will never contact individuals unexpectedly to discuss their crypto holdings or request access to cold storage devices or seed phrases [3].

The Cyber Crime team is currently working to trace and recover the stolen funds, but given the nature of blockchain transactions, the chances of retrieving the assets may be limited. The police have issued a series of warnings to the public, advising individuals to verify any suspicious contact by hanging up and calling local police directly. They have also emphasized that no legitimate company or law enforcement agency will ever ask for a seed phrase or request action on a cold storage device without prior notification [2].

This case is part of a broader pattern of evolving cybercriminal tactics. In recent months, law enforcement agencies in both the UK and the U.S. have reported an uptick in scams involving deepfake technology, AI-generated voice messages, and fake law firms targeting victims of previous crypto thefts. The FBI has previously warned of scammers posing as crypto exchange employees or government officials to extract sensitive account information [3]. These tactics underscore the growing sophistication of cybercriminals in the crypto space and the urgent need for heightened user awareness.

Authorities have advised the public to adopt a “zero trust model” when dealing with unsolicited communications involving cryptocurrency. Users are encouraged to maintain strong security practices, including regular monitoring of account activity, use of multi-factor authentication, and verification of any suspicious interactions with official channels. As the industry continues to expand, so too do the methods of those seeking to exploit it for financial gain [2].

Source:

[1] Police issue warning after £2.1m Bitcoin 'scam' (https://www.bbc.com/news/articles/c1kzg1nwwk1o)

[2] Scammer poses as senior UK cop to steal $2.8M in crypto (https://cointelegraph.com/news/scammer-poses-cop-steals-millions-crypto-wales-police)

[3] Scammer Poses as UK Police, Steals $2.8M in Bitcoin From ... (https://finance.yahoo.com/news/scammer-poses-uk-police-steals-165649710.html)