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Cautionary Tale: $7M Lost by Crypto Investor Who Bought Discounted Cold Wallet
- A Chinese crypto investor lost almost US$7 million in crypto assets after buying a discounted cold wallet through Douyin, the Chinese version of TikTok.
- Blockchain security firm SlowMist believes the wallet's private key was compromised at creation, leading to the loss of US$6.5 million in digital assets within hours.
- SlowMist warned against buying discounted cold wallets through unofficial channels, stating that 99% of them are tampered.
- The victim's close friend, a Chinese Twitter user named Hella, reported the theft and traced the stolen assets to Huiwang, a company associated with cybercriminal activities.
- Huiwang is known for services like payment processing and has been linked to money laundering by cybercriminals.
- SlowMist emphasized the risks of purchasing cold wallets through unofficial channels and advised using official sources for such transactions.
- The incident serves as a cautionary tale for crypto investors, highlighting the importance of verifying the authenticity of the products they purchase.
- Australian investors are also warned about the prevalence of crypto scams, as ASIC continues its efforts to shut down fraudulent companies engaging in scams.
- ASIC's Deputy Chair, Sarah Court, emphasized the persistent threat of scams and urged consumers to remain vigilant.
- Crypto investors are reminded to prioritize security and legitimacy when dealing with digital assets to avoid falling victim to similar scams.
- The case underscores the ongoing challenges in ensuring the safety and security of crypto investments in the face of evolving threats in the digital space.
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