User loses $6.5m in crypto after buying tampered cold wallet via TikTok China

A user lost $ 6.5 million in crypto after accumulating a cold compromise wallet via Tiktok China.

In a recent article on X, the Safety Blockchain Slowmist company reported that a user lost $ 6.5 million in crypto after buying a compromise cold cryptographic wallet through Douyin, the Chinese version of Tiktok. The portfolio, although sealed in the factory, had its private key compromised to creation. Only a few hours after the user transferred funds in it, the assets were drained.

“Avoid” cold wallets “or” cold wallets at reduced prices “- 99% are falsified,” warned the company.

The incident reflects the Trezor Model T incident investigation By Kaspersky in 2023, where a perfectly sealed but counterfeit portfolio contained a modified firmware and pre-generated seed sentences, allowing attackers to silently drain in weeks after the user has activated the compromise device without knowing it. This device was also purchased from an unofficial online seller, who marketed it as new and factory sealed.

The @Hella user, who identified himself as a friend close to the victim, said That although Slowmist has been contacted and began to retrace the flow of transactions, recovery is unlikely.

“When you buy a cold wallet, you need to choose a reliable channel. Most of those on the internet are false,” wrote @Hella.

He also explained that once the funds stolen, they were channeled by a money laundering network suspected of being linked to Huiwang.

Huiwang (Aka Huione Group) is a Cambodian conglomerate linked to the huge black laundering network and silver whitening known as the name Haowang warranty. Despite information reporting a recent closure and the deletion of its official channels, the network has recently surface In a new area and remains fully operational. According to Chainalysis, its transaction volumes even increased after designation As the main concern of money laundering by Fincen.