A cryptocurrency user has reportedly lost approximately $6.9 million worth of digital assets after purchasing a discounted cold wallet through Douyin, the Chinese version of TikTok. Here’s a detailed account of the incident:
The Wallet Purchase: The user bought a cold wallet that was being sold through the e – commerce feature of Douyin, which allows third – party sellers to offer various products. The wallet was likely advertised as “factory – sealed” or “discounted,” luring the user with the promise of a bargain.
Compromised Private Key: Blockchain security firm SlowMist revealed in a post that the private key of the cold wallet was compromised during its creation. This meant that the attackers had access to the user’s funds from the very beginning.
Rapid Theft: Once the user received the wallet and presumably transferred their cryptocurrency into it, the funds were drained within hours. The thieves funneled the stolen crypto through a mixing platform called Hui Wang, a Cambodian conglomerate that operates a network of illicit businesses, making it extremely difficult to trace and recover the funds.
Security Warning: SlowMist’s chief information security officer emphasized the importance of not “gambling your entire fortune on a wallet that’s a few hundred bucks cheaper.” Cold wallets advertised as “factory – sealed” or “discounted” on platforms like Douyin often turn out to be tampered with, and the lower price is a ploy to attract victims. Crypto users are strongly advised to purchase cold wallets only through official, verifiable channels to avoid such scams.
Relaed topic:
- The Paraguayan Presidential Palace promptly refuted the rumor of a Bitcoin legal tender fraud, confirming that the X account had been hacked
- Kadena has issued the first grant from a $25 million real estate tokenization fund in a pilot project at the Bank of England
- SEC Chair Paul Atkins supported decentralized finance and opposed forced intermediaries in his latest roundtable speech
