Haciyev Reşit 
A large-scale security breach that sent shockwaves through the blockchain world caused sudden and sharp price movements in the crypto markets. According to on-chain analyst ZachXBT, a hardware wallet–related social engineering attack that took place on January 10, 2026 resulted in the theft of more than $282 million worth of Bitcoin and Litecoin. The rapid conversion of the stolen funds into Monero triggered a notable surge in the price of XMR.
How Did the Hardware Wallet Attack Happen?
According to information shared by ZachXBT, the attacker gained access to the victim’s hardware wallet using social engineering techniques. As a result of permissions unknowingly granted by the user, control of the wallet was compromised. Addresses identified during the attack reportedly held around 1,459 BTC and 2.05 million LTC. After the funds were seized, they were quickly transferred across multiple networks in an effort to complicate tracking.
The attacker converted a large portion of the stolen Bitcoin and Litecoin into Monero through instant swap services. Monero’s privacy-focused design and limited traceability are believed to be the main reasons it was chosen. ZachXBT noted that these rapid and heavy conversions caused unusually high transaction volumes on the Monero network.
ZachXBT stated: “Sudden conversions from BTC and LTC into Monero directly triggered the sharp rise in XMR’s price.”
ZachXBT also revealed that part of the stolen Bitcoin was bridged across different blockchains using THORChain. Through this method, the funds were not kept on a single network but were instead distributed across Ethereum, Ripple, and Litecoin networks in fragments. Experts say such multi-chain movements are intended to make fund tracking more difficult and to further complicate on-chain analysis, highlighting a deliberate effort by the attackers to cover their tracks.
XMR Price Shows Strong Surge
Following the incident, Monero climbed to nearly $800 during the week, approaching a new high and recording a striking 74% increase in a short period. This rally was supported by a sudden spike in demand and trading volume. Although the price later pulled back to around $630 at the time of reporting, the correction remained limited, with roughly 46% of the gains still intact. Analysts suggest that holding these levels indicates continued strong interest in Monero.
Assessment
This incident once again underscores how critical hardware wallet security and awareness of social engineering attacks are for the crypto ecosystem. It also clearly demonstrates how large-scale fund movements can rapidly impact market dynamics through headlines such as Monero price surge, XMR rally, and Bitcoin and Litecoin theft. The case uncovered by ZachXBT shows that similar attacks—and their effects on the market—will continue to be closely monitored.
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