Bitcoiner Loses $91M in Social Engineering Scam: The $91M Heist That Rocked Crypto

Crypto's latest cautionary tale just dropped—and it's a $91 million gut punch.

The Setup

Social engineering strikes again, bypassing all technical safeguards. No smart contract exploits, no blockchain vulnerabilities—just pure human manipulation at work.

The Aftermath

One investor now sits $91 million lighter, proving once again that the weakest link in crypto security isn't the code—it's the person holding the keys. The 'not your keys, not your crypto' crowd just got a brutal reality check.

Another reminder that in decentralized finance, the most centralized risk remains between the chair and the keyboard. Wall Street bankers are probably chuckling into their martinis—turns out traditional finance isn't the only place where fortunes vanish through social engineering.

How the $91M Theft Happened

According to blockchain data shared by ZachXBT on X (formerly Twitter), the theft occurred on Tuesday at 11:06 am UTC, when the attacker convinced the victim to hand over critical access information. The stolen Bitcoin was quickly sent to a fresh wallet before being laundered through Wasabi Wallet, a privacy-focused Bitcoin mixer that obfuscates transaction trails.

Social engineering attacks exploit human trust rather than technical flaws. By pretending to be legitimate customer support agents, scammers manipulate victims into revealing sensitive details such as recovery phrases, private keys, or login credentials. Once compromised, the funds can be drained almost instantly.

“This was a classic case of impostors posing as exchange and wallet support,” ZachXBT wrote, adding that the attacker had a premeditated laundering plan, using Wasabi Wallet just a day after the theft.

Why Social Engineering Works in Crypto

Social engineering remains one of the most dangerous threats in the cryptocurrency space. Unlike traditional hacks that require breaking through advanced cybersecurity systems, these attacks target the human element — exploiting trust, urgency, or fear.

ZachXBT urged caution, reminding users:

“Assume every call or email you receive is a scam by default.”

Despite growing awareness campaigns, even experienced crypto investors continue to fall prey to these schemes. The anonymous, irreversible nature of blockchain transactions makes recovery nearly impossible once funds are moved.

Was North Korea Involved? ZachXBT Says No

Given the size of the theft, speculation quickly turned to whether state-sponsored hacking groups, such as North Korea’s Lazarus Group, were involved. However, ZachXBT dismissed that possibility, noting that the attacker used a “clean” bitcoin address before mixing funds through Wasabi Wallet.

The timing of the attack was also notable — it occurred exactly one year after the $243 million Genesis creditor theft, though ZachXBT suggested this was likely coincidental.

Scammers Pose as Hardware Wallet Providers

One of the most common tactics in recent years has been impersonating major hardware wallet providers such as Ledger and Trezor. Scammers often send out emails, fake apps, or even physical letters claiming that users must perform a “critical security update.”

In April 2025, Ledger users received fraudulent letters urging them to input their secret recovery phrases — effectively handing over full control of their wallets. Victims were told that failing to act WOULD result in “restricted access” to their funds.

Such schemes have proven highly effective. In another shocking case earlier this year, an elderly U.S. citizen lost over $330 million worth of Bitcoin to a social engineering attack, underscoring that these scams target both sophisticated investors and vulnerable individuals alike.

The Bigger Picture: Crypto Theft Surges in 2025

The $91 million theft is just one part of a much larger trend. According to blockchain security firm CertiK, over $2.1 billion has already been stolen in crypto-related hacks and scams in the first five months of 2025 alone.

The majority of these losses stem from wallet compromises and phishing schemes rather than direct protocol exploits. However, the year’s single largest incident was the $1.4 billion Bybit exchange hack in February, proving that even top-tier, audited platforms are not immune.

Crypto theft remains a multi-billion-dollar underground industry, where stolen funds are often funneled through mixers, privacy wallets, and cross-chain bridges to obscure their origins before being cashed out.

Protecting Yourself Against Social Engineering

The growing scale of attacks highlights the urgent need for better user education and security practices. Experts recommend the following precautions:

• Never share recovery phrases or private keys — no legitimate company will ever ask for them.

• Verify support contacts through official websites and never trust unsolicited calls, emails, or messages.

• Use hardware wallets bought directly from the manufacturer, not third parties.

• Enable multi-factor authentication (MFA) on all accounts linked to crypto activity.

• Treat urgency as a red flag — scammers often create fake emergencies to rush decisions.

As ZachXBT emphasized, skepticism is a user’s strongest defense: assume every unsolicited communication is malicious until proven otherwise.

Conclusion

The $91 million Bitcoin theft serves as yet another stark reminder of crypto’s greatest vulnerability — human error. While blockchain itself remains resilient against direct hacking, attackers are increasingly exploiting the weakest link: people.

With crypto adoption rising and institutional interest growing, the stakes are higher than ever. Unless investors adopt strict security practices and remain vigilant against social engineering, incidents like this will continue to plague the industry.