A crypto user lost nearly $7 million after purchasing a compromised cold wallet via Douyin, the Chinese version of TikTok. Blockchain security firm SlowMist reported that the private key was compromised at the creation stage, allowing hackers to drain the user's funds within hours. The victim, a friend of a former Bitmain team member, received a chilling call after the theft. SlowMist cautioned that discounted cold wallets, falsely advertised as ‘factory sealed,’ are often tampered with to deceive buyers. Although the stolen funds were tracked, recovery seemed unlikely due to the scam’s sophisticated nature. SlowMist's chief information security officer emphasized the dangers of opting for cheaper wallets, highlighting that trusting unreliable channels can lead to devastating financial losses. Notably, this incident follows a broader trend of scams leveraging malware in crypto devices.

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