A major security incident has rocked the crypto space: 3,520 BTC (~$330.7 million) was stolen from a U.S.-based wallet in what is now one of the largest thefts of 2025. However, this breach wasn’t the result of a technical flaw — no code was broken.
According to on-chain tracing, the theft stemmed from an advanced social engineering attack. Over several weeks, scammers impersonated trusted service providers, gradually gaining the victim’s confidence. Once access was secured, the attackers extracted private wallet data and drained the funds. The stolen BTC was rapidly laundered across 50+ wallets and 20+ exchanges, significantly complicating recovery efforts.
What’s striking is that the funds were stored in cold storage, signaling that the security compromise was entirely human — not technical. The breach highlights the growing threat of psychological manipulation in the crypto industry.
What to Watch For:
Fake support channels or impersonators
Phishing websites and fraudulent email domains
Urgent or emotionally manipulative requests.