A crypto investor lost nearly $7 million after buying a discounted cold wallet on Douyin, China’s TikTok equivalent. The wallet was rigged by scammers. The wallet’s private key was compromised from the start, enabling thieves to empty the user’s funds in just hours.
The blockchain security firm, SlowMist, has stated the incident on its X post and warned that “factory sealed” or “discounted” cold wallets, often sold via Douyin’s e-commerce platform, Douyin Shop, are frequently tampered with to trap unsuspecting buyers. The low prices are bait to lure victims.
An X user named Hella, previously associated with Bitmain co-founder Jihan Wu, revealed the victim was a close friend who called in panic, describing the wallet as a “carefully designed hot trap.”
Hella stated the stolen crypto was laundered through Huiwang, a Cambodian network tied to shady operations like Huione Pay, Huione Crypto, and the darknet market Haowang Guarantee. “When buying a cold wallet, you must choose a reliable channel. Most of the ones on the internet are fake,” Hella advised. SlowMist tracked the funds but said recovery is unlikely.
The firm’s security chief, 23pds, stressed on X, “Don’t gamble your entire fortune on a “wallet” that’s a few hundred bucks cheaper — that’s not saving money, it’s throwing your life away!”
Scams like this are hard to stop, as third-party shippers, unaware of the fraud, deliver pre-loaded malware devices. This scam is similar to other recent cases. In May, a Chinese company making printers was accused of hiding crypto-stealing malware in its software.
In April, Kaspersky found thousands of fake Android phones sold online with malware designed to steal crypto and personal information. Experts have emphasized that crypto users should always buy things from trusted sellers and should check devices to stay safe from these clever scammers.
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