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Crypto Investor Loses $6.9M in Douyin Wallet Scam
- A crypto investor lost $6.9 million in a Douyin cold wallet scam where the private key was compromised.
- The hacked wallet was promoted as factory-sealed and discounted, luring victims on Douyin Shop.
- Scammers accessed the wallet during production, leading to the draining of funds.
- SlowMist, a blockchain security firm, confirmed tampering with the wallet's private key.
- The stolen funds were laundered through a Cambodian network, making recovery unlikely.
- Warning against purchasing hardware wallets from unverified sources due to high risks.
- Discounted wallets on Douyin Shop are often compromised prior to sale.
- Avoiding cheap wallets and buying from reputable sellers is advised by security experts.
- Supply chain issues can lead to devices being hacked without the buyer's knowledge.
- Investors are urged to purchase cold wallets from reliable sources and check for tamper-evident packaging.
- The crypto community faces increasing fraud with millions lost to scams, including deepfake frauds.
- Douyin's e-commerce platform lacks strong fraud prevention measures, enabling scammers to exploit unsuspecting buyers.
- Investors should prioritize security over savings when dealing with cryptocurrency assets.
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