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.
https://www.bitdegree.org/crypto/news/tampered-wallet-from-douyin-drains-users-6-9-million-cryptoThis is quite sad, and I think it happened as a result of ignorance. For someone that has that much, I want to believe spending more money to buy a good hardware device such as Trevor and the likes won't be a problem. However, even with his money, he didn't know hardware device could be tempered with and he was supposed to buy directly from the manufacturer or authorized resellers. He paid a steep price for not being well informed.