Crypto user loses $6.9M to a cold wallet from China’s TikTok

A cryptocurrency user recently suffered a staggering loss of approximately $6.9 million after purchasing a cold wallet through the Chinese version of TikTok. The cold wallet, advertised at a discounted price and claimed to be "factory sealed," was compromised before it even reached the buyer.

According to blockchain security firm SlowMist, the private key associated with the wallet was stolen during its creation process, allowing attackers to drain the funds within hours of the user's deposit.

The stolen assets were quickly laundered through a mixing platform which obscured the transaction trail and made recovery nearly impossible.

This incident highlights a growing trend of sophisticated scams involving counterfeit hardware wallets sold on social media platforms, where wallets are often offered at prices slightly below the value of the assets they are supposed to secure. These offers serve as bait to lure unsuspecting investors.

SlowMist’s Chief Security Officer issued a strong warning to crypto users to avoid purchasing cold wallets from unofficial sources, especially those advertised as “new,” “unopened,” or discounted on platforms like TikTok. The scam underscores the critical importance of buying hardware wallets only through official, verifiable channels to prevent devastating financial losses.

This high-profile theft serves as a stark reminder of the vulnerabilities in the crypto ecosystem, especially as adoption grows and scammers become increasingly sophisticated in exploiting hardware security gaps. It also emphasizes the need for heightened user education and vigilance regarding the provenance of crypto storage devices.

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