Tether returned 1 million USDT sent to a blind address

CONTENT

  • Anonymous user mistakenly sent 1 million USDT stablecoins to the Swerve project management contract

  • At first, everyone thought that the money was lost forever, but Tether intervened and managed to get it back

  • Binance plans to build security measures into its system to avoid such mistakes

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The Decentralized Finance (DeFi) industry is a blockchain-based financial service that offers users access to open, efficient and … More) continues to evolve at a cosmic pace, but in inexperienced hands, these tools are dangerous and unreliable. There are a million confirmations. In this case, one million USDT lost.

A tweet from September 8th says a user sent $ 1 million worth of Tether (USDT) to the wrong address.

A rookie just sent 1M USDT directly into @SwerveFinance contract

心疼 老 铁 , 能 别 直接 给 合约 打 钱 了 吗 @ pic.twitter.com/KOxtT8PGJ8

– Dovey 以德服人 Wan (@DoveyWan) September 8, 2020

Swerve.Finance is a Fork In the crypto world, a fork is essentially a change to the blockchain protocol. Since cryptocurrencies operate on decentralized networks, all parties … More DeFi Curve Protocol. The project offers a pool of liquidity on the Ethereum blockchain and is intended for trading stablecoins. Our unlucky user tried to deposit funds to Swerve, but sent the money directly to the project management contract.

It’s like sending an email to an automated address. Only in this case, the message that the letter has not been delivered does not come. Moreover, as soon as the user clicks the “send” button, the money no longer belongs to him.

Read about where to buy USDT and not be mistaken in our article..

Such a transaction can be canceled only if such a function is prescribed in the smart contract. But Swerve does not have it registered, so USDT deposited to this address is lost forever.

However, shortly after the incident, Tether CTO Paolo Ardoino promised to return the funds. He asked the user to open a corresponding ticket in the Tether support service and added that if the funds were in ERC20 format, then they can be returned.

Tether returned 1 million USDT sent to a deaf address

In this case, the user simply provides proof that the coins were burned, and Tether will compensate this amount..

Binance founder Changpeng Zhao noted that the exchange plans to create a security system that will prevent similar errors in the future..

We will implement a feature to prevent people from mistakenly sending to contract addresses we support from #Binance.

We also refunded people who inadvertently sent BNB to the smart contract address during our mainnet switch. 1 guy made $ 250,000 as a result. https://t.co/EviET9vwBE

– CZ Binance (@cz_binance) September 8, 2020

This is not the first time that someone has funneled funds from a liquidity provider directly into a management contract. For example, on August 30, the Gate.io exchange made the same mistake with SushiSwap, which cost it $ 400,000..

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Tether returned 1 million USDT sent to a blind address
Tether returned 1 million USDT sent to a deaf address
Tether returned 1 million USDT sent to a deaf address

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Tether returned 1 million USDT sent to a blind address

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