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A cryptocurrency investor has fallen victim to a devastating cold wallet scam, losing a staggering $6.9 million after purchasing what appeared to be a legitimate hardware wallet from China’s TikTok, Douyin.
Blockchain security firm SlowMist revealed that the wallet was compromised from the moment it was created, allowing thieves to siphon the funds within hours.
This incident highlights the growing dangers of cold wallet scams, where fraudsters tamper with hardware wallets before selling them at discounted prices. Experts warn that buyers should only purchase from trusted vendors, no matter how tempting the deal may seem.
The victim bought the wallet through Douyin Shop, an e-commerce platform linked to the Chinese social media giant. The device was advertised as “factory-sealed” and sold at a discount, a common tactic used in cold wallet scams to lure unsuspecting buyers.
SlowMist reported via X (formerly Twitter) that the wallet’s private key—the crucial piece of data needed to access crypto funds—was compromised before the user even set it up. Within hours of transferring assets, the entire $6.9 million was drained.
A close friend of the victim, known online as Hella, described the moment they realized what had happened: “The late-night phone call gave me chills. This wasn’t just a hack—it was a carefully designed hot trap.”
Investigators traced the stolen crypto to Huiwang, a Cambodian conglomerate linked to illicit financial activities. Also known as the Huione Group, the network operates shadowy services, including Huione Pay, Huione Crypto exchange, and a darknet marketplace called Haowang Guarantee.
Hella warned others on X:
“When buying a cold wallet, you must choose a reliable channel. Most discounted ones online are fake.”
Unfortunately, by the time the theft was detected, the funds had already been laundered through multiple transactions, making recovery nearly impossible.
SlowMist’s chief information security officer, known as 23pds, emphasized the risks of cutting corners on security:
“Don’t gamble your entire fortune on a wallet that’s a few hundred bucks cheaper. It’s not saving money—it’s throwing your life away.”
The expert also noted that cold wallet scams are particularly hard to prevent because third-party sellers often handle shipping. Even warehouse workers packing the devices may have no idea they’re part of a criminal operation.
This cold wallet scam is just one example of a broader trend. Earlier this year, a Chinese printer manufacturer was accused of bundling malware with its official drivers, leading to $953,000 in Bitcoin theft.
In April, cybersecurity firm Kaspersky uncovered thousands of counterfeit Android phones sold with preinstalled crypto-stealing malware. These cases show that scammers are constantly evolving their tactics, making it critical for users to verify the authenticity of any device before use.
Buy only from official vendors – Avoid third-party marketplaces, especially those offering deep discounts.
Check for tampering – Inspect packaging for signs of resealing or damage.
Verify firmware before use – Download updates directly from the manufacturer’s website.
Never share recovery phrases – Legitimate wallet providers will never ask for them.
As cold wallet scams become more sophisticated, crypto users must stay vigilant. A small discount isn’t worth the risk of losing a fortune.
The $6.9 million heist serves as a brutal reminder that cold wallet scams are on the rise. Whether through tampered hardware, fake apps, or malware-infected devices, fraudsters are finding new ways to exploit unsuspecting investors.
For now, the victim’s funds remain lost, a costly lesson in the importance of buying security devices from trusted sources. As one expert put it: “If a deal seems too good to be true, it probably is.”
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