Scammer Steals $520K in Bitcoin via Hardware Wallet. Avoid This in 5 Steps

Key Points

1. A victim lost 4.35 BTC (~$250K) after transferring funds to a compromised hardware wallet bought from a defunct shop on JD.com.

2. The scammer gained access by recording the seed phrase, allowing them to transfer all the victim's BTC holdings.

3. Five recommended steps to avoid such scams: reset the wallet before use, transfer small amounts first, and educate yourself on hardware wallet security.

4. The incident underscores the risks of purchasing hardware wallets from untrusted sources and the need for proper setup and verification.

5. Blockchain security firm SlwoMist reported the incident, emphasizing the importance of vigilance in crypto transactions.