Douyin is the Chinese version of Tiktok, which means the person bought the cold wallet through the platform. I do not know if it is a hardware wallet but I guess it can be a collectible. I do not know the reason some people are just buying a wallet in collectibles which has been a means scammers used in the past to scam people, or maybe it is a cheap hardware wallet.
What I know about it is that the wallet is very cheap, the private keys are known to the people that sold it at some point. The victim likely see it cheap and bought it and transferred $6.9 million worth of coins there. I do not know the coins the that were lost.
Everything is full of unknowns, so I wonder if there is any truth to all of this? The world is full of people who do stupid things, but if someone lost that much money this way, they should be given the Nobel Prize for the stupidest person of the year.
I would not trust incomplete stories, but then again with AI even completely fabricated stories with many details are more common. We should not trust these things, and it can be for tax evasion reasons too. Fake losing a lot of money publicly, and then you don't have to pay taxes on it. More and more of these stories are fake these days.