SLP Stolen in $282M Hardware Wallet Social Engineering Scam Surpasses 2024 Record

• A major social engineering scam involving a hardware wallet led to the theft of over $282 million in Bitcoin and Litecoin on January 10, surpassing the previous record of $243 million set in 2024 according to reports.
• The stolen funds were quickly converted into Monero and other blockchains to obscure the trail, with Monero's price spiking as a result of the large conversion as reported.
• This incident highlights the growing sophistication of social engineering tactics and the vulnerability of hardware wallets despite increased security awareness in the crypto industry according to analysis.

A major social engineering scam in the crypto space has resulted in the theft of over $282 million in Bitcoin and Litecoin. The victim was deceived by attackers who impersonated customer support representatives, manipulating them into revealing sensitive information such as recovery seed phrases as detailed.

The attackers moved swiftly after gaining access to the victim's funds, using multiple instant exchanges and decentralized protocols like THORChain to launder the stolen assets.

. The funds were converted into Monero, a privacy-focused cryptocurrency, which made tracking and recovery extremely difficult according to reports. This caused a significant price spike in Monero, rising from $612 to $717 within a short period as documented.

This theft is the largest individual crypto theft of 2026 so far and underscores a troubling trend in the industry. Security experts have repeatedly warned of the rising threat of social engineering attacks, which now dominate the landscape of crypto theft. These attacks exploit human psychology and trust in trusted institutions rather than relying solely on technical vulnerabilities as reported.

How Much Was Stolen in the SLP Social Engineering Scam?

The victim lost over $282 million in Bitcoin and Litecoin, with the stolen assets amounting to 1,459 BTC and 2.05 million LTC. This is the largest single-case theft of 2026 so far and surpasses the previous record of $243 million set in 2024 .

This incident is notable not only for the sheer scale of the loss but also for the speed with which the attacker moved the funds. Within minutes of stealing the assets, the attacker began laundering the proceeds through multiple instant exchanges and decentralized protocols .

What Was the Stolen SLP Converted Into?

The stolen Bitcoin and Litecoin were converted into Monero and other blockchains to obscure the trail. Monero, a privacy-focused cryptocurrency, was used as a primary tool to anonymize the movement of funds. This triggered a sharp price increase in Monero as the large transaction volume overwhelmed the market .

In addition to Monero, Bitcoin was also bridged to Ethereum, Ripple, and Litecoin via THORChain to further complicate tracking efforts. This multi-chain laundering strategy demonstrates how attackers are leveraging both privacy features and decentralized infrastructure to evade detection .

What Are the Implications for Crypto Wallet Security?

This incident highlights the vulnerability of hardware wallets to social engineering attacks. Attackers are increasingly impersonating customer support representatives from trusted platforms like Trezor to manipulate victims into sharing sensitive information .

Despite the industry's efforts to raise awareness and improve security, these attacks continue to evolve in sophistication. Investors are advised to verify every character of destination addresses before sending funds, avoid SMS-based two-factor authentication, and be cautious of unsolicited messages claiming account compromises .

The irreversibility of crypto transactions means that once attackers gain access to private keys or trick users into authorizing transfers, the likelihood of recovering stolen funds is very low. This case underscores the need for stronger wallet security measures and better public education on the risks of social engineering .