Crypto Investor Loses $7 Million in Fake Cold Wallet Scam on Douyin

A cryptocurrency investor suffered a $7 million loss after purchasing a compromised cold wallet on Douyin, China''s version of TikTok. The wallet, sold at a discount, had its private key pre-compromised, allowing thieves to drain funds within hours.

Blockchain security firm SlowMist flagged the incident on social media, warning against ''factory-sealed'' or discounted hardware wallets sold via Douyin Shop. ''Cold wallet ≠ Safe,'' the firm cautioned, highlighting these devices as carefully designed traps.

The stolen assets were reportedly laundered through Cambodian payment network Huiwang, which has ties to shadowy operations including Huione Pay and darknet market Haowang Guarantee. ''When buying cold wallets, you must choose reliable channels. Most internet offerings are fake,'' advised an associate of the victim.