A recent incident on TikTok involving a hardware wallet scam led to significant financial losses. A victim lost $6.9 million after purchasing a compromised device.
TikTok Scam Incident
The victim purchased what looked like a 'sealed, brand-new' hardware wallet on the Chinese version of TikTok. This led to one of the most devastating cryptocurrency thefts of 2025. Criminals exploited the very device meant to protect users, alarming many crypto enthusiasts.
How Counterfeit Hardware Wallets Are Compromised
The victim bought what appeared to be a legitimate Ledger hardware wallet from Douyin. Although the packaging seemed factory-sealed, the device was counterfeit. Upon setup, the wallet functioned normally, but the attackers had predetermined the secret phrase, allowing them to drain the funds instantly after the victim deposited money.
The Growing Hardware Wallet Theft Problem
Criminals are increasingly using hardware manipulation for theft, with scams rising significantly in 2025. Such incidents highlight the importance of purchasing brand-new devices directly from manufacturers instead of through unofficial channels. Various methods of compromise exist, including firmware modifications and counterfeit production.
The TikTok hardware wallet case emphasizes the need for caution when using such devices. Users should pay close attention to where they buy their wallets to avoid significant losses.
