Scams

A proposed $10,000,000 class action settlement arising from an August 2022 cyberattack on Nelnet would allow affected borrowers to claim up to $5,000 with documented out-of-pocket losses. The incident allegedly exposed data of 2,501,324 OSLA and Edfinancial customers. Claims and opt-out or objection are due March 5, with final approval hearing set for May 5.

On 17 January 2026 at 14:20, a single self-custody wallet was drained of more than $282 million after the owner disclosed a hardware recovery phrase. According to blockchain investigator ZachXBT, no technical exploit was involved. Cybersecurity firm ZeroShadow said about $700,000 was flagged and frozen as the thief moved funds across chains and into Monero.

On January 17, 2026, former Ripple CTO David Schwartz cautioned that copy trading can mislead followers by elevating luck as skill. He warned that choosing leaders based on past wins makes it hard to avoid luck-driven records and urged caution when assessing track records.

On October 23, 2025, a shared network drive at law firm Fried, Frank, Harris, Shriver & Jacobson LLP used by JPMorgan Chase was accessed by an unauthorized party, exposing data tied to 659 bank customers. The compromised files contained names along with account numbers, Social Security numbers, passport or other government ID details, and contact information, and Chase is now notifying affected clients, urging them to watch for identity theft and offering two years of complimentary credit monitoring.

On January 17, 2026, Rokas Baltrusaitis outlined how fatigue undermines crypto security, leading to rushed approvals, skipped checks, and subtle risk judgment errors. The article argues that 24/7 markets and convenience tools intensify decision overload, making attention management a primary defense. It recommends adding review friction, segmenting wallets, and routinely revoking stale permissions.

On January 10, 2026, an on-chain investigator reported that a hardware wallet social engineering scam led to more than $282 million in BTC and LTC being stolen and routed into Monero via multiple instant exchanges. The attacker also bridged a substantial share of the BTC to Ethereum, Ripple, and Litecoin using THORChain, while Monero's price surged from around $450 to near $800 before later pulling back below $630.

Published on January 17, 2026, this analysis explains how modern crypto scams operate within audited code and governance to redirect value without overt violations. Tactics include altering fees, rebalancing strategies, and rerouting execution after users commit capital. It warns that audits and documentation validate process, not economic fairness.

U.S. District Judge Ann Marie McIff Allen sentenced Utah resident Brian Garry Sewell to three years in federal prison after he pleaded guilty to wire fraud and operating an unlicensed money-transmitting business. Prosecutors said he defrauded investors of nearly $3 million and ran a cash-to-crypto service that moved more than $5 million; the court ordered more than $3.6 million in restitution.

A crypto holder on the Ethereum network lost a total of $514,000 in USDT after an address poisoning scam, with the incident detected around 14:01 UTC and publicly flagged at 14:34 UTC. The victim first sent 5,000 USDT as a test to a lookalike address before following up with 509,000 USDT to the same destination, while a separate attack in December 2025 saw another trader lose $50 million in USDT using a similar tactic. These scams exploit users' reliance on abbreviated wallet displays and transaction history when copying addresses, making fund recovery onchain highly unlikely once transfers are confirmed.

Tudou Guarantee, a Telegram-based escrow service tied to Huione Group, has reportedly begun winding down after returning around $130 million in USDT to public merchants since early 2026. The move, which followed an announced shutdown on its Telegram channel, could slow phishing and pig butchering schemes that flourished on the platform and had previously been linked to tens of billions of dollars in crypto transactions.