A user lost $6.9 million in a crypto scam involving a counterfeit Ledger hardware wallet purchased from Douyin, the Chinese version of TikTok. The wallet appeared authentic with factory-sealed packaging but had been tampered with before sale. When the victim set it up, the process was compromised, allowing attackers, who had predetermined the secret phrase, to drain the wallet of funds immediately after transfer. This incident highlights a new wave of crypto fraud targeting hardware wallets, a sector that has seen a surge in thefts, especially as the hardware wallet market grows significantly. In the first half of 2025 alone, more than $2.1 billion was lost in crypto fraud. SlowMist, a blockchain security firm, attempted to trace the stolen funds, which were funneled through laundering networks in Cambodia, demonstrating the challenges in fund recovery for such schemes. Users are advised to buy wallets from official sources only, be wary of pricing inconsistencies, and check for tampering signs to avoid similar scams.

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