They trusted a sealed wallet from TikTok, and it cost them $6.9M in one of 2025’s most alarming crypto scams. A Chinese investor purchased what looked like a brand-new Ledger hardware wallet from Douyin Shop, the e-commerce platform tied to TikTok’s Chinese version. Within hours of transferring 50 million yuan (about $6.9 million) into the wallet, criminals drained every cent.
The victim believed the packaging was genuine, complete with holographic seals and a professional finish. According to blockchain security firm SlowMist, however, the wallet’s security had been compromised before sale. Attackers had predetermined the recovery phrase, giving them instant access to private keys.
“This isn’t saving money, it’s throwing away your lifeline,” said 23pds, SlowMist’s chief security officer. He warned that discounted or third-party wallets are a high-risk gamble in an industry plagued by increasingly sophisticated fraud.
Investigators traced the stolen funds to Huiwang, an entity operating through Cambodia’s Huione Group, which has been linked to large-scale money laundering. As Bloomberg has previously reported, such networks exploit weak regulatory oversight, making recovery nearly impossible.
The case underscores a troubling trend: criminals are no longer just phishing for passwords but tampering with the very hardware designed to protect digital assets. With the global hardware wallet market projected to exceed $3 billion by 2033, experts warn that counterfeit or modified devices will remain prime targets for attackers.
For users, the lesson is clear—always purchase hardware wallets directly from manufacturers. Any product bought through unofficial channels, no matter how authentic it appears, could be a trap.