A TikTok user fell victim to a $6.9 million crypto heist after buying a counterfeit hardware wallet. SlowMist reported the theft, highlighting a new threat to crypto security. Users are urged to be cautious of compromised hardware wallets, as warning signs are minimal until it’s too late.
The victim purchased a seemingly authentic Ledger hardware wallet from Douyin Shop, tricked by the packaging. Attackers compromised the wallet, gaining access to private keys and draining $6.9 million. The incident sheds light on the vulnerability of hardware wallets to theft, with the global market predicted to reach $3 billion by 2033.
SlowMist traced the stolen funds to a Cambodian entity, Huiwang, known for laundering cyber heist proceeds. The operation, utilizing a financial network called Huione Group, poses challenges for recovery due to multiple obfuscation layers and lack of AML/KYC controls. Social media platforms like TikTok are rife with crypto scams.
Cryptocurrency fraud, like the recent cold wallet scam, has seen over $2.1 billion in losses in 2025. SlowMist warns against purchasing discounted hardware wallets, emphasizing the importance of buying directly from suppliers. Criminals utilize various methods to compromise wallets, including firmware modification and supply chain infiltration.
With the crypto industry worth over $3 trillion, users must safeguard against hardware wallet scams. Buying from official sources, checking packaging for inconsistencies, avoiding cheap pricing, and destroying wallets with pre-filled information are essential precautions. The surge in crypto-related fraud underscores the need for heightened vigilance and security measures.
Read more at Cointelegraph: How a Ledger user lost $6.9 million after trusting a sealed wallet from TikTok.