Bitcoin News Today: "Stolen $91M Bitcoin Shows How Scams Outpace Tech Security"

A Bitcoin investor reportedly lost 783 BTC—valued at approximately $91.4 million—after falling victim to a sophisticated social engineering scam on August 19, 2025. The attack was uncovered by on-chain sleuth ZachXBT, who identified the scam as one of the most significant individual losses of the year. The perpetrator impersonated a hardware wallet support agent, successfully deceiving the victim into surrendering access credentials to their wallet. This incident follows a growing trend of social engineering attacks in the cryptocurrency space, contributing to an estimated $3.1 billion in losses from hacks and scams in the first half of 2025 [1].

After gaining access, the attacker moved the stolen funds through multiple layers of obfuscation, using Wasabi Wallet—a privacy-focused tool designed to mask transaction trails—to launder the assets. Wasabi Wallet employs a coinjoin protocol that combines multiple users' transactions, making it difficult to trace the source of the funds. While the wallet is often praised for enhancing user privacy, its misuse in this case highlights the double-edged nature of such tools in the context of illicit activity [1].

This theft marks the one-year anniversary of another major breach—the $243 million Genesis creditor theft—which led to the arrest of 12 individuals in California earlier this year. Both incidents underscore the persistent vulnerabilities in the broader cryptocurrency ecosystem, particularly in the realm of user trust and verification processes. Despite advancements in technical security, social engineering remains a potent and evolving threat, exploiting human psychology rather than technological weaknesses [1].

The attack also coincides with a broader uptick in social engineering schemes targeting crypto holders. North Wales Police recently issued a warning after a separate incident in which a victim lost £2.1 million in Bitcoin. In that case, scammers impersonated senior UK police officers, fabricating a story about a security breach involving the victim’s personal identification documents. The victim was prompted to enter their password on a fake website, granting the attackers immediate access to their wallet. Authorities emphasized that no legitimate law enforcement or financial institution would ever request sensitive information in such a manner [3].

Analysts have noted that scammers are increasingly leveraging data breaches to identify and target high-value victims, tailoring their attacks with a level of precision that heightens the stakes for individual investors. The incidents also highlight the importance of user education and vigilance. Police have reiterated that any unexpected communication requesting access to a cold storage device or seed phrase is a red flag and should be treated with immediate suspicion.

The Bitcoin price has not shown direct correlation to the incident, but the growing frequency of high-profile scams may contribute to ongoing market volatility. Analysts caution that while technical safeguards are essential, behavioral security—such as recognizing phishing attempts and verifying the legitimacy of support channels—is equally critical in mitigating such risks [1].

Source:

[1] Explain Wasabi like I'm 5 (https://docs.wasabiwallet.io/using-wasabi/ELI5.html)

[2] A Single Investor Lost $91M in Bitcoin to a Fake Support ... (https://www.financemagnates.com/cryptocurrency/a-single-investor-lost-91m-in-bitcoin-to-a-fake-support-scam/)

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