Over $282M Stolen via Hardware-wallet Social-Engineering; Attackers Laundered Large Sums Cross-Chain
Security firm PeckShield, citing researcher ZachXBT, reported that on January 10, 2026 a user lost over $282 million in BTC and LTC after a hardware-wallet social-engineering attack. Attackers bridged 928.7 BTC (≈$71 million) through THORChain to other chains and converted funds into 19,631 ETH, 3.15 million XRP and 77.2K LTC. Of the ETH, 1,468 ETH were routed into Tornado Cash; over 2,400 ETH were sent to centralized exchanges including WhiteBit, KuCoin and Huobi for laundering. The incident highlights risks from social-engineering targeting hardware wallets, cross-chain bridging (THORChain) as an obfuscation vector, and use of mixers and exchanges to cash out. Key metrics: total loss >$282M, 928.7 BTC bridged, 19,631 ETH created, 1,468 ETH to Tornado Cash, >2,400 ETH to exchanges. Traders should monitor exchange inflows, on-chain analytics, and THORChain activity for potential sell pressure and heightened compliance scrutiny.
Bearish
This incident is bearish for short-term market sentiment for several reasons. Large-scale theft and subsequent cross-chain laundering usually lead to notable sell pressure when funds hit centralized exchanges; over 2,400 ETH already flowed to WhiteBit, KuCoin and Huobi, increasing immediate supply risk. Use of THORChain and mixers like Tornado Cash complicates tracing and can delay defensive actions, but once funds are identified on exchanges compliance teams may freeze or liquidate, creating volatility. Past incidents (large exchange hacks or stolen-asset movements) have produced short-term downward pressure on affected assets — especially BTC and ETH — as markets price in potential dumps and regulatory attention. In the medium-to-long term, impact is more neutral: market absorbs losses, but the event raises regulatory and operational risks. Expect heightened scrutiny on cross-chain bridges and mixer addresses, potential tighter KYC/enforcement on exchanges, and temporarily increased volatility in BTC, ETH, XRP and LTC. Traders should monitor on-chain flows, exchange deposit alerts, and sanctions/blacklist updates to time risk management and potential short opportunities.