User Loses Millions in Cold Wallet Bought Via Douyin: SlowMist

SlowMist, a blockchain analysis firm, said in its X post dated June 14, 2025, that a crypto user lost millions of dollars in a cold wallet compromise; it also notes that the wallet was bought by the user through Douyin, a Chinese version of TikTok

Last night, We received an emergency report: a user lost $6.5M worth of crypto from a cold wallet.The wallet was bought via Douyin (TikTok China), but the private key was compromised at creation — and funds were drained within hours. Cold wallet ≠ SafeAvoid “Factory…

— SlowMist (@SlowMist_Team) June 14, 2025

The post further notes that the private key was compromised at creation and which led to the drainage of funds in just a few hours.

Blockchain security further warned the users to avoid buying factory-sealed or discounted cold wallets, arguing that 99% of them are tampered.

SlowMist concluded by saying that always buy cold wallets from official channels, initialize them by yourself, and use them securely

A quick overview of Douyin

Douyin was launched by a Chinese short video platform and the regional counterpart of TikTok in 2016; it has an e-commerce ecosystem enabling merchants and brands to sell products directly to the user base of more than 700 million.

As TikTok, Douyin operates only in China with over 300 million users in 2023, the application is widely popular among Generation Z and millennials. Its content is tailored for Chinese audiences, emphasizing educational and skill-based videos alongside entertainment.

Douyin’s flagship store was launched in March 2021, allowing businesses to establish operations within the stores and blend digital and physical shopping experiences.

What are ‘Fake Cold Wallet’ scams?

In simple words, a ‘Fake Cold Wallet’ scam is when a malicious actor creates and distributes counterfeit wallets or misleading users into fake wallet software to steal cryptocurrency

A Cold Wallet is defined as a crypto storage device or system that remains offline, making it less vulnerable to hacking compared to hot wallets

In most cases, the scammers send users counterfeit hardware wallets such as fake Ledger or Trezor devices, often packaged to look authentic, complete with branded materials or letters claiming this is a replacement of a ‘ compromised’ wallet

Every year, users lose millions of dollars in crypto from the losses caused by fake cold wallet scams

Cold wallet scams exploit trust in secure devices by using tampered devices, phishing, or social engineering. It is important to research thoroughly before buying a cold wallet.

Crypto market price updates

Until writing, the crypto market capitalization was $3.34 trillion with an increase of 2.05%, and trading volume was $96.54 billion. At the same time, the crypto fear and greed index was at 50, indicating neutrality in sentiments.

Bitcoin is currently at $107,093 with a surge of 1.73%, and its market capitalization is $2.12 trillion with an addition of 1.73%, trading volume is $40.95 billion with a massive surge of 15%.

Ethereum is trading at $2,628 with an increase of 4.26% in the past 24 hours, and its trading volume is up by 37.93%, reaching $18.66 billion

According to CoinMarketCap, the intraday gainers list has been ruled by SPX6900, which grew around 17.89%, followed by Jito, Hyperliquid, Fartcoin, Kaspa, Raydium, and Solana.