A user fell victim to a $6.9 million crypto heist after purchasing what appeared to be a sealed hardware wallet on TikTok's Chinese platform, Douyin Shop. Despite generating the usual random seed phrases when set up, the wallet had been compromised by attackers who predefined the secret phrase. Within hours of depositing their funds, the user lost everything as the criminals drained the wallet. This incident highlights a new threat in cryptocurrency fraud where counterfeit hardware wallets are sold as genuine products, often appearing factory-sealed. Security firm SlowMist investigated the case and traced the stolen funds through a complex laundering scheme in Cambodia. The rise of hardware wallet scams is alarming, and experts warn users to buy wallets directly from manufacturers to avoid such pitfalls. This incident is part of a broader increase in cryptocurrency-related fraud, with significant losses reported in 2025.

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