How a Ledger user lost $6.9 million after trusting a sealed wallet from TikTok.

What is Tiktok’s hardware packet fraud?

The person who bought what looked like a “sealed, brand new” hardware wallet advertised on the Chinese version of Tiktoku was a victim of a $ 6.9 million crypt and lost all its resources within minutes.

Late Night Emergency Call to Safety Company Blockchain Slowmist revealed One of the most devastating thefts of 2025 cryptocurrencies. Criminals are now using security devices designed to protect users from online threats. It is a sophisticated new threat in the crypto fraud and frankly, it is for many users to see Hardware wallet The manipulation results in criminal exploitation of multimillion.

The main main information security officer 23PDS was the first to report the case. Unlike known fraud using Phishing e -mailJunk messages or spoof websites, this attack will hit the security of the victim at the hardware level.

The biggest problem of all crypt users is that there are minimal warning signals for this type of compromise until it is too late.

How are counterfeit hardware wallets disrupted?

The victim bought what looked like a legitimate A hardware wallet of a book From the Douyin Shop store, the platforms of electronic trading inside the Chinese version of the social media Tiktok.

For safety you should Never buy second -hand, uninhabited hardware wallet If he has been endangered. But in this case, the buyer was deceived by the packaging. It seemed to be an authentic product fixed in a factory, complemented by original holographic stickers and a professional goal. Unsuccessful users were nothing else or alarming about the account of the accounting book.

In this case, when the victim has set up a new wallet, it worked quite normal and generated the usual random 24-Slove Regeneration Phrases. Unfortunately, investigators would eventually determine that it was at the moment when the wallet was threatened before selling.

In fact, the attackers have already determined a secret phrase or threatened the process of generating numbers. This provided them with complete access to the wallet and its Private keys. So when the funds were transferred to the wallet, the attackers could immediately release it.

Unfortunately, the victim deposited approximately 50 million Chinese yuan ($ 6.9 million) to the wallet address and thought Stora from a cold. Within a few hours, however, the criminals emptied the wallet.

Did you know that? The global hardware wallet market was awarded more than $ 460 million in 2024 and is expected to rise to more than $ 3 billion by 2033. As a result, hardware wallets that users strongly trust, which is the main goal for crypto theft.

SLOWMIST TEAM’S CRYPTO INVESIGATION TRAIL

As stated in the Slowmist X account, the victim gave an emergency report on theft on 13 June 2025.

Slowmist is a security company Blockchain, which offers a number of services, including security audits and threat information and intensively working in cryptocurrency investigation. His work often applies to large organizations and government bodies.

On this occasion he was able to trade stolen funds and reveal that they were immediately transferred HuiwangShadow entity in Cambodia. This operation used a financial network called Huione Group, which operates a “node for washing the yield with cyber robbery” according to to a network for recovering financial crimes or fincen.

Huiwang Crypto Washing is a favorite financial pull for criminals like multiple layers of confusion, associated with no Anti-Money Launderning (AML) or Get to know your customer (kyc) Controls, recovery virtually impossible. So, while Slowmist could follow the stolen funds, after a cold wallet leak there is little hope for recovery.

Did you know that? Tiktok and similar platforms of social media are outbreaks for crypto fraud. Fraud ranges from false investment opportunities, viral videos fraud, unsolicited messages, and endangered hardware wallets sales – all designed to not change users from their cryptovit.

A problem with increasing closed crypt theft

Cold wallets’ scam shows how quickly you can lose the whole crypto hiding in seconds. Main Security Officer Slowmist, 23PDS, he explained On x that the crypt users should not gamble their “whole fortune for” wallet “, which is a few hundred bucks cheaper.” He continued and said, “He doesn’t store the money, he’ll throw it out of your life rope.”

Incidents such as these are part of a wide increase in fraud -related frauds that bother 2025. The first half of the year has see More than $ 2.1 billion in crypt losses across infrastructure level attacks.

Hardware manipulation of wallets is another sophisticated vulnerability that crypt holders must be aware of. No matter how the “legitimate” product of the wallet may appear, this case emphasizes the importance of buying brand new devices directly from suppliers. It is important to avoid other sources, especially discount or market platforms.

Safety experts have also identified several ways to further jeopardize hardware wallets:

• Firmware modification: The attackers replace legitimate firmware with harmful versions that leak private keys.
• Manual replacement: Criminals include fake setup instructions that direct users to pre -generated addresses.
• Supplier chain infiltration: Wallets are captured and modified during transport or retail distribution.
• Counterfeit production: Complete fake devices that mimic legitimate hardware wallets.

Did you know that? Even one of the largest crypto companies in the world, Coinbase, is susceptible to cyber attacks, and the company recently admitted Criminals approached data This is used to proportionate people to hand over their crypto. The criminals demanded $ 20 million to keep it calm, but refused to pay and promised to return anyone who was Scammed.

How to protect against hardware crypt wallet

Given that the industry of over $ 3 trillion cryptocurrencies has become an attractive goal for criminals, especially hardware wallet, where users trust these devices to store significant funds for a long time.

This means that users must take measures to buy and Crypt safely and protect against theft of a private key:

• Packing of inconsistencies: The legitimate packaging of hardware wallets uses ultrasonic welding in conjunction with sealing resistant to handling. A device held together with glue, missing external safety packages or pre -open are Red flag.
• Cheap Prices: Wallets sold for less than the official retail price, especially on social media platforms or through unofficial channels, are probably counterfeit or endangered.
• Pre -filled information: Any wallet that comes with preset pins, regenerative phrases or setting instructions should be destroyed immediately.
• Unofficial marketplace and retailers: Purchase from anywhere than the official website of the manufacturer significantly increases the risk.