Cold Wallet Crash? The Lesson of Losing 50 Million in Assets Overnight

Fake cold wallets harm people, learn these few tricks to protect your assets!

Written by: SuperEx

Compiled by: Plain Language Blockchain

The cryptocurrency world has once again stirred up a huge controversy. A news article titled "Investors Purchase Cold Wallets, Assets Lost Overnight" has sparked widespread discussion online.

Event summary:

A cryptocurrency investor purchased a so-called "Cold Wallet" through a short video platform, and subsequently transferred digital assets worth approximately 50 million yen (, about 6.9 million dollars ) into it. Soon after, these assets were completely stolen by hackers overnight.

According to confirmations from a blockchain security company, this is not a fictional story, but a real event. The possible culprit? The Wallet purchased by investors is a tampered third-party device that had a backdoor implanted before delivery.

Today, we take this real case as a starting point to explore a key question: Is the Cold Wallet really the safest way to store crypto assets? How should ordinary users protect their assets? What traps must be absolutely avoided?

Tragedy: Why Cold Wallets Can Still Be Hacked?

Many people's first reaction to this news is: "How can someone with 50 million yen in assets not understand basic security knowledge?" But the reality is that in the cryptocurrency space, users who accumulate wealth far exceed those with technical understanding. As the saying goes: "Wealth grows faster than security awareness."

Perhaps you bought some Bitcoin in 2013 when it was only worth a few thousand yuan. Today, its value has increased a hundredfold or even more. Your asset portfolio has skyrocketed, but your security habits have not kept up.

So, in order to be "safer," you bought a hardware Wallet. But you didn't verify the source and instead placed an order through random links from live broadcasts, short videos, or shopping platforms, without confirming whether it was from official channels.

What happened? The assets have disappeared.

Because what you bought is not a Cold Wallet, but a wallet with a pre-installed backdoor. The attacker has already mastered the recovery phrase. As soon as you deposit assets, it is equivalent to actively handing them over to the other party.

Cold Wallet ≠ Absolute Security

Cold Wallets also have their own risks!

When hearing "Cold Wallet", many people immediately associate it with "absolute security". However, the truth is: there are both real and fake Cold Wallets, with varying degrees of "coldness", and proper operational norms must be followed during use.

1. What is a Cold Wallet?

In a broad sense, a Cold Wallet refers to storing private keys or recovery phrases in a completely offline, network-isolated environment.

Common forms:

• Paper Wallet: The "coldest" method - writing the private key on paper, locking it in a safe, completely offline.
• Hardware Wallet: A device similar to a USB, it stores private keys and connects via USB or Bluetooth, emphasizing physical isolation.
• Air-gapped devices: Experienced users may generate and sign transactions using an offline Linux system.

What is a pseudo cold wallet?

• Hardware Wallets purchased through unofficial channels
• Wallets that require an internet connection to use (, such as some Web3 multi-signature Wallets ).
• A wallet that automatically syncs on-chain data through a mobile application when in use.
• Generate recovery phrase Wallet in an online environment

2. Why do hardware wallets still carry risks?

"A hardware wallet is not offline, right? It has a secure chip, and the private key is stored locally, isn't it very safe?"

The problem is:

• Networked = Exposed: Once connected via USB or Bluetooth, it is no longer "cold".
• Risk of firmware tampering: An attacker may modify the firmware in advance, exposing your "secure" device completely.
• Appearance cannot be detected: Even if the packaging looks brand new, you cannot confirm whether the firmware has been tampered with.
• User error: Taking screenshots of the recovery phrase, entering it into a computer, or sending it to oneself via email—these are all fatal mistakes.

Therefore, the key is not whether to use a hardware Wallet, but how to use it: only by purchasing through official channels, initializing it yourself, and generating the recovery phrase completely offline can it be considered "relatively safe."

What kind of Wallet is really secure? Just follow these points.

No matter which Wallet you use, keep the following rules in mind:

1. Only purchase from official channels

Whether it is Ledger, Trezor, Keystone, or other brands, only purchase through official websites or authorized dealers. No matter how persuasive the live stream is, do not take risks.

2. Recovery Phrase / Private Key Only Exists on Paper, Never Online

Do not take screenshots, do not copy and paste, do not take photos. Storing the recovery phrase in notes, cloud drives, or emails is equivalent to handing it directly to hackers. The safest way? Write it down by hand and store it in your home safe.

3. Keep your phone and computer clean, avoid suspicious wallet applications

Many fake Wallet applications look exactly like real ones, but after installation, they will steal private keys in the background. Before installing any Wallet application, be sure to verify the official website, developer identity, and app store ratings.

4. Use multi-signature or multi-device verification

Do not store all your assets in one Wallet. Use layered storage: keep large assets offline and small assets in a mobile Hot Wallet.

5. Understand the risk control system when using the platform Wallet

Even centralized wallets vary greatly in security. Some platforms have robust risk control and withdrawal limits, while others may allow backend employees to move your funds at will.

Choose a wallet with a transparent and secure system and a good user reputation.

Choose a secure and transparent platform Wallet

Not only look at the functionality, but also at the security architecture

For many users, centralized exchange wallets are convenient and easy to use, but they also come with risks – you are entrusting your assets to a third party. Therefore, it is important to pay attention not only to functionality but also to the risk control framework.

Here are some recommended platform wallets with good security records and high user trust:

• BN: The world's largest trading platform, with leading asset reserve management and SAFU insurance fund, separating hot and cold storage.
• OK: Strong technical strength, supports MPC Wallet, provides public asset reserve proof.
• Bitget: Known for copy trading and derivatives, with strong wallet isolation and layered encryption technology.

Summary: Security awareness is your first line of defense in the crypto world.

Hardware wallets are not a panacea, and cold wallets are not without flaws.

True defense is your own awareness, habits, and respect for risks.

Final suggestions:

• Purchase Wallet, only use the official website
• The recovery phrase should never come into contact with the internet; paper is the best.
• Enable multi-factor authentication, do not rely on a single device
• Do not blindly distrust the platform, but also do not blindly trust it.
• Integrate security awareness into your financial strategy, rather than remedying it afterwards.

The crypto world is never short of stories of overnight wealth.

But those who can preserve their wealth and survive for a long time are always the ones who remain vigilant.