Hackers Steals $282M in Bitcoin and Litecoin in Hardware Wallet Scam

A major crypto theft has shaken the market after attackers stole $282 million in Bitcoin (BTC) and Litecoin (LTC).

Reports say the attacker used a hardware-wallet scam, tricking victims into giving access to their funds. The incident has raised fresh concerns about the growing number of crypto wallet exploits in the industry.

Stolen Crypto Moved Through Monero and DeFi to Avoid Tracking

Blockchain tracking firm Lookonchain first reported the theft in a recent X post. Following the exploits, the attacker moved quickly to hide the trail, setting off strong reactions across the crypto market.

According to Lookonchain, the stolen Bitcoin and Litecoin were rapidly converted into Monero (XMR). Unlike most cryptocurrencies, Monero focuses on transaction privacy, making it far more difficult for investigators to trace fund flows.

The attacker did not use centralized exchanges only. Reports say the thief used THORChain to swap assets across different blockchains without middlemen, allowing fast transfers and avoiding normal checks.

This shows a growing problem for the crypto industry. When stolen funds move through decentralized platforms and privacy coins, it becomes very hard for investigators to track or recover them. 

The case has further raised concerns about how privacy coins can be used to hide stolen digital assets. 

Monero Jumps, Then Falls Sharply After Market Fears

The large conversion had an immediate effect on the market. As the attacker moved BTC and LTC into Monero (XMR), demand jumped quickly.

Monero’s price rose from $612.02 to a daily high of $717.69, but the surge did not last. Traders soon feared the attacker might sell large amounts of XMR, which hurt confidence.

At the time of writing, Monero is trading at $623.05, down 11.41% in the past 24 hours. Trading volume also fell nearly 30% to $255.75 million due to panic selling and fears of more pressure.

Despite the negative news, Monero’s market position has improved. It now ranks 12th by market value, worth about $11.54 billion. Interest in Monero has also attracted experienced traders. 

Veteran trader Peter Brandt recently said he made strong profits trading Monero. This shows that some investors still have confidence in the asset.

Crypto Theft Sparks Fresh Debate Over Privacy Coins

The incident has brought back debate about privacy coins in crypto. Coins like Monero, Zcash, and Dash are often linked to crime. However, supporters say privacy is important for digital finance and Web3.They argue these tools protect users from surveillance and abuse, not criminals. 

Last May, the European Union (EU) took a significant step to tighten its grip on digital finance. By July 1, 2027, the EU will ban privacy tokens and anonymous crypto wallets. 

The $282 million theft shows how scams can cause huge losses and how privacy coins make tracking stolen funds harder. As crypto use grows, the industry must find a balance between privacy, security, and accountability.