Scammers use discounted wallets to lure victims on Douyin Shop.
An investor in cryptocurrencies was hit with a loss of 6.9 million dollars after he bought a hacked cold wallet on Douyin, a Chinese app of TikTok. The wallet was promoted as factory-sealed and discounted, but was opened prior to delivery, revealing its private key, and was subsequently emptied of funds within some hours.
There was tampering with the wallet’s private key during manufacturing, according to blockchain security firm SlowMist. The device, purchased through the e-commerce storefront of Douyin, looked valid but was actually hacked by fraudsters. The money was laundered using Huiwang, which is a Cambodian network that is associated with illegal activities and has minimal chances of reclamation.
The investor had sent 6.9 million dollars to the wallet, which disappeared almost immediately. SlowMist monitored the stolen assets and said that it is unlikely to recover them as the laundering process is complex. This case is a warning about purchasing hardware wallets from uncontrolled sources.
Discounted crypto wallets sold online often pose significant risks. The scammers take advantage of websites such as Douyin Shop, where third-party sellers post their goods. Most of the wallets that are advertised as new or sealed off are defiled prior to sale. The price is low in order to attract unsuspecting customers.
The chief information security officer of SlowMist also pointed out the need to shun cheap wallets. The officer cautioned that one should not endanger his or her wealth on a slightly cheaper device because it can cost a fortune in losses. Valid cold wallets can only be purchased through reliable manufacturers of the wallet or through authorized dealers.
This technique brings attention to the supply chain issues of hardware wallets. Devices may be hacked during manufacturing or transport, typically without the awareness of the individuals handling them. Customers have to make sure that what they are buying is real lest they be duped in a similar manner.
To remain secure, investors ought to buy cold wallets directly from credible sellers. One can prevent losses by checking the tamper-evident packaging and not accepting deals that are too good to be true. SlowMist recommends official channels to purchase hardware wallets.
The crypto community is encouraged to remain cautious because fraud is becoming increasingly advanced. More than 36 million were lost in a different global cryptocurrency scam in 2025 alone, according to the United States Department of Justice, which recorded an uptick in incidents of fraud earlier this year. Also, there has been an upsurge in AI-driven deepfake frauds, with 87 fraud rings busted this year, according to a Bitget report.
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