A recent case of fraud involving a crypto wallet purchased through Douyin resulted in significant losses for an investor, highlighting risks associated with unreliable sources of storage hardware.
Incident Overview
An investor using Douyin to acquire a cold crypto wallet faced catastrophic consequences, losing digital assets worth ₹54 crores (approximately $6.9 million). According to blockchain security firm SlowMist, the wallet was modified before reaching the buyer.
Investor Warnings
Notable influencers like @im23pds and @heela1413 warned the community that 99% of 'discounted' or 'factory-sealed' wallets purchased online may be pre-compromised. This incident serves as a serious cautionary tale in an uncertain market as more users seek self-custody solutions.
Mistakes in Acquiring Crypto Wallets
When purchasing cold wallets, it is crucial to follow certain rules: acquire items only from official or certified distributors, avoid wallets with pre-loaded recovery phrases or keys, and be wary of deep discounts or third-party offers on platforms like Douyin.
The Douyin case serves as a wake-up call for all crypto holders. Security involves not just being offline, but also the need for careful sourcing and methods for storing digital assets.
