😱 $6.9M Gone in Hours: A Costly Mistake
A crypto investor lost $6.9 million after purchasing a cold wallet advertised as "factory sealed" and discounted via Douyin, the Chinese version of TikTok. The device, however, came pre-compromised, and funds were drained within hours of transfer.
According to blockchain security firm SlowMist, the wallet’s private key was compromised at the time of setup, turning it into a “hot trap.”
“Don’t gamble your entire fortune on a wallet that’s a few hundred bucks cheaper.” — 23pds, SlowMist CISO
🛒 Douyin’s Risky E-Commerce Ecosystem
Douyin’s e-commerce feature, Douyin Shop, allows third-party sellers to list products. Unfortunately, this makes it easy for scammers to push tampered cold wallets at a discount, catching security-conscious—but cost-cutting—crypto users off guard.
🕵️ Where the Crypto Went
Once the funds were transferred, they were washed through Huiwang—a Cambodian group known for its illicit crypto businesses, including:
- Huione Pay PLC (payment services)
- Huione Crypto (crypto exchange)
- Haowang Guarantee (darknet marketplace)
Despite blockchain tracking efforts, recovery was deemed impossible by SlowMist and others involved.
🧠 Cold Wallet Scams: A Growing Threat
This isn't an isolated incident. Cold wallets sold online may be:
- Preloaded with malware
- Physically tampered with
- Packaged by unwitting intermediaries
In May, a Chinese printer company was accused of distributing crypto-stealing malware with official drivers. Earlier, Kaspersky uncovered counterfeit Android phones with preinstalled crypto-stealing malware.
🛡️ Wallet Security 101: Don’t Risk It
SlowMist's key message is clear: Always buy from verified sources. The minor savings from an off-market cold wallet could cost your entire portfolio.
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