A crypto investor has reportedly lost nearly $7 million in digital assets after falling victim to a sophisticated scam involving a compromised cold wallet purchased through Douyin, the Chinese version of TikTok.
The incident, which highlights a growing threat in the hardware wallet market, saw the user’s funds drained within hours of the wallet’s activation.
Blockchain security firm SlowMist revealed the details of the security breach in a recent post on the social media platform X, stating that the “private key was compromised at creation.” The firm’s investigation suggests that the discounted cold wallet, advertised on Douyin’s e-commerce platform, Douyin Shop, was likely tampered with prior to sale.
“This case serves as a stark reminder: do not gamble your entire fortune on a wallet that’s a few hundred bucks cheaper,” warned SlowMist’s Chief Information Security Officer, known by the X handle 23pds. “It’s not saving money, it’s throwing your life away.”
Officials from Douyin or Chinese regulatory bodies have not yet released an official statement regarding this specific incident.
