SlowMist, a blockchain security firm, has reported that a crypto holder lost nearly $6.9 million after buying a discounted cold wallet through Douyin, the Chinese version of TikTok.
According to a June 14 post on X, the wallet’s private key had been exposed during production. As a result, the user’s funds were stolen just hours after they were transferred to the device.
SlowMist noted that many cold wallets sold online as “factory sealed” or offered at lower prices are often fake or tampered with before sale.
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Douyin’s built-in shopping feature lets third-party vendors sell products, including cold wallets. In this case, the victim had purchased the wallet through that system.
A former Bitmain employee stated in a post on X that the victim was a friend and described the wallet as “a carefully designed hot trap”.
The stolen assets were quickly transferred through Huiwang, which is linked to Huione Group, a company based in Cambodia. The group runs several services, including Huione Pay, Huione Crypto, and a marketplace known as Haowang Guarantee, all of which have been tied to suspicious transactions.
SlowMist’s chief information security officer posted on X that this case serves as a reminder that buying cheap wallets can lead to major losses. He also pointed out that many people involved in packaging or shipping these devices may not know they’re helping distribute compromised products.
Recently, the crypto exchange BitoPro reported losing over $11.5 million in crypto on May 8. What happened? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
