Investor’s Cold Wallet Theft Highlights Risks of Unofficial Purchases – Coincu

An investor’s cold wallet, purchased via Douyin, was drained of 50 million RMB ($6.8 million USD) in cryptocurrency after its private key was compromised at generation.

This highlights severe security risks of sourcing cold wallets through unofficial channels, with assets quickly laundered via Huiwang.

Investor’s $6.8M Loss Traced to Fake Wallet Purchase

The incident involves a counterfeit cold wallet purchased via the social media platform Douyin. SlowMist’s CISO, 23pds, disclosed the event, pointing out the compromised private key during wallet generation. “99% of the so-called ‘brand new and unopened’ or ‘special price flash sales’ cold wallets online are fake and likely tampered with,” noted 23pds, Chief Information Security Officer at SlowMist. The wallet, sold at a discount, turned out to be fraudulent. Experts emphasize that fake wallets are prevalent online.

Immediate implications include heightened investor caution, as the theft underscores the importance of buying only through official channels. SlowMist warned against nearly all online sales at discounted prices.

Community reactions include calls for stricter regulations, as stakeholders engage in discussions on wallet security.

Historical Parallels and Security Recommendations for Crypto Holders

Did you know? The theft is reminiscent of a 2025 incident where $330.7 million was stolen in a similar cold wallet compromise. This pattern reveals ongoing security challenges in the crypto industry.

As of June 15, 2025, Bitcoin (BTC) holds a price of $105,604.32 with a market cap of $2.10 trillion, per CoinMarketCap. The 24-hour trading volume stands at $35.31 billion, showing a decline of 36.28%, while a 90-day increase of 26.49% is noted.

Coincu researchers suggest potential technological improvements in wallet security could arise from this incident. Market leaders stress the importance of direct purchases to secure digital assets against frauds like those recorded recently.