Translated by: Blockchain in Plain Language
The cryptocurrency world is once again in turmoil. A news article titled 'Investor Buys Cold Wallet, Loses All Assets Overnight' has sparked widespread discussion online.
The sequence of events:
A cryptocurrency investor purchased a so-called 'cold wallet' through a short video platform, and subsequently transferred digital assets worth about 50 million yen (approximately 6.9 million USD) into it. Soon after, all these assets were stolen by hackers overnight.
According to confirmation from a blockchain security company, this is not a fictional story but a real event. The possible culprit? The wallet purchased by the investor was a tampered third-party device that had already been implanted with a backdoor before delivery.
Today, we take this real case as a starting point to explore a key question: Is a 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 are cold wallets still hacked?
Many people's first reaction to this news is: 'How could someone with 50 million yen in assets not understand basic security knowledge?' But the reality is that in the cryptocurrency field, it is very common for users whose wealth accumulation far exceeds their technical knowledge. As the saying goes, 'Wealth grows faster than security awareness.'
Perhaps you bought some Bitcoin in 2013 when it was worth only a few thousand yuan. Today, its value has increased a hundredfold or more. Your asset portfolio has skyrocketed, but your security habits have not kept pace.
Thus, in order to be 'safer', you purchased a hardware wallet. But you did not verify the source; instead, you ordered through a live stream, short video, or random link on a shopping platform, without confirming whether it came from an official channel.
What was the result? The assets 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. The moment you deposit assets, it is equivalent to handing them over to the other party.
Cold wallet ≠ absolute safety.
Cold wallets have their own risks!
When people hear 'cold wallet', many immediately think of 'absolute safety'. But the truth is: there are both genuine and fake cold wallets, with varying degrees of 'coldness', and correct operational norms must be followed during use.
1. What is a cold wallet?
Broadly speaking, 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—write the private key on paper, lock it in a safe, completely offline.
Hardware wallet: a device similar to a USB that stores private keys, connects via USB or Bluetooth, emphasizing physical isolation.
Air-gapped devices: Experienced users may use an offline Linux system to generate and sign transactions.
What is a cold wallet?
Hardware wallets purchased through unofficial channels
Wallets that require an internet connection to use (e.g., some Web3 multi-sign wallets)
Wallets that automatically sync on-chain data via mobile apps while in use
Wallets that generate recovery phrases in a networked environment
2. Why do hardware wallets still carry risks?
'Aren't hardware wallets offline? They have encryption chips, and private keys are stored locally, isn't that very safe?'
The problem is:
Connected = exposed: once connected via USB or Bluetooth, it is no longer 'cold'.
Risk of firmware tampering: attackers may pre-modify the firmware, 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 errors: taking screenshots of recovery phrases, entering them on a computer, or sending them to yourself 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 by yourself, and generating recovery phrases completely offline can it be considered 'relatively safe'.
What kind of wallet is truly safe? Just follow these points.
No matter which wallet you use, remember the following rules:
1. Only purchase from official channels
Whether it's 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 phrases/private keys only exist on paper, absolutely never online
Do not take screenshots, do not copy and paste, do not take photos. Storing recovery phrases in notes, cloud drives, or emails is equivalent to handing them 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 identical to real ones, but after installation, they 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 assets in one wallet. Use layered storage: keep large assets offline and small assets in a mobile hot wallet.
5. When using platform wallets, understand their risk control system
Even centralized wallets vary greatly in security. Some platforms have complete risk control and withdrawal restrictions, while others may allow backend staff to move your funds at will.
Choose wallets with a transparent security system and a good user reputation.
Choose secure, transparent platform wallets.
Look not only at 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're entrusting your assets to a third party. Therefore, it's essential to focus not only on functionality but also on the risk control framework.
Here are some recommended platform wallets with good security records and high user trust:
Binance: the world's largest exchange, with leading asset reserve management and SAFU insurance fund, separating hot and cold storage.
OKX: strong technical capabilities, supports MPC wallets, provides public asset reserve proofs.
Bitget: known for copy trading and derivatives, with strong wallet isolation and layered encryption technology.
SuperEx: Super Wallet perfectly integrates with the SuperEx operating system, providing asset isolation for everyone, ensuring 100% asset safety. At the same time, SuperEx combines the trading efficiency of a centralized exchange with the storage security of a decentralized exchange.
Summary: Security awareness is your first line of defense in the crypto world.
Hardware wallets are not a panacea, and cold wallets are not infallible.
True defense lies in your own awareness, habits, and respect for risk.
Last few suggestions:
Purchase wallets only from official websites.
Recovery phrases should never be exposed to the internet; paper is the best.
Enable multi-layer verification; do not rely on a single device.
Do not blindly distrust platforms, but also do not blindly trust them.
Integrate security awareness into your financial strategy, rather than remedying it afterwards.
The crypto world has no shortage of overnight wealth stories.
But those who can safeguard their wealth and survive for a long time are always those who remain vigilant.
