$6.9M Douyin Wallet Scam: A Warning for Crypto Investors

A cryptocurrency investor suffered a devastating $6.9 million loss after purchasing a compromised cold wallet on Douyin, the Chinese equivalent of TikTok. The wallet, advertised as factory-sealed and discounted, had its private key compromised during manufacturing. The funds were swiftly drained after the investor deposited the money.

Blockchain security firm SlowMist confirmed that the private key was tampered with during production. The seemingly legitimate wallet, purchased via Douyin Shop, was secretly hacked. The stolen funds were subsequently laundered through Huiwang, a Cambodian network known for illicit activities, making recovery highly unlikely.

Dangers of Discounted Crypto Wallets

The incident highlights the significant risks associated with purchasing discounted crypto wallets from unofficial sources. Scammers exploit e-commerce platforms like Douyin Shop, offering seemingly new or sealed wallets at heavily discounted prices to attract victims. These wallets are often compromised before sale.

SlowMist's Chief Information Security Officer emphasizes the importance of avoiding suspiciously cheap wallets. He cautions against jeopardizing significant wealth for minor savings, stressing that legitimate cold wallets should only be purchased directly from reputable manufacturers or authorized dealers. This case underscores critical supply chain vulnerabilities where hardware wallets can be compromised during manufacturing or transit.

Protecting Your Crypto Assets

To safeguard your investments, always purchase cold wallets directly from trusted sources. Verify tamper-evident packaging and avoid deals that seem too good to be true. SlowMist strongly recommends purchasing hardware wallets only through official channels.

This incident serves as a stark reminder of the ever-evolving landscape of cryptocurrency fraud. The increasing sophistication of scams underscores the need for vigilance. The US Department of Justice reported over $36 million in losses from various global cryptocurrency scams in 2025 alone.

While Douyin Shop offers convenience, its lack of robust fraud prevention mechanisms creates opportunities for exploitation. Investors must prioritize security over savings. Remember, your financial security is paramount.

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$6.9M Douyin Wallet Scam: A Warning for Crypto Investors