An investor who transferred 1 million USDT to the Swerve. Finance DeFi platform has reportedly lost all of his tokens, after choosing the wrong address. The funds were lost forever, until Tether gave some hope for a happy end by promising to help the owner reclaim the lost tokens.
The token holder sent $1 million in Tether stablecoin to the wrong address by mistake, resulting in the loss of all coins. These digital assets were supposed to merge with the pool of the DeFi platform Swerve. Finance, but they ended up directly to a smart contract with no refund.
The method for making a transaction like this is similar to responding to a no-reply email. However, in this case, instead of receiving back an automated response “failed to deliver”, the user permanently loses his access to the sent funds. Cancellation of such a transaction is possible only if the smart contract allows it. The platform Swerve. Finance does not have this feature, which is why the $1 million in USDT was, at least in theory, lost forever.
Not too long after the incident, Tether CTO Paolo Ardoino intervened by promising to help with the refund. Ardoino invited the upset holder to open an app of the company’s support service and indicated that if the tokens were of the ERC-20 standard, then most likely they can be returned. Binance exchange head Changpeng Zhao added that the exchange will work to create safeguards to avoid similar incidents in the future.
