Chinese TikTok Shopper Loses Life Savings in $6.9 Million Cold Wallet Trap

A cryptocurrency investor suffered a devastating loss of $6.9 million after purchasing a compromised cold wallet through Douyin, China''s version of TikTok. The device, sold at a discount, had been pre-tampered by scammers who gained access to the private key during wallet creation. Funds were drained within hours of setup.

Blockchain security firm SlowMist confirmed the incident, noting the stolen assets were laundered through the Huiwang network with no recovery possible. The case highlights critical vulnerabilities in hardware wallet supply chains. Security experts now warn against buying "factory sealed" devices from unverified sellers—a growing threat vector in crypto.

This sophisticated attack mirrors other supply chain compromises targeting crypto users, including malware-laden printers and counterfeit Android devices. As cold wallet adoption grows, so too does the ingenuity of bad actors exploiting trust in physical security measures.