A User Burned $1.36 Million USDT by Accidentally Sending it to the Contract Address: Here’s What Happened After

  en.bitcoinsistemi.com 5 h

A cryptocurrency user accidentally sent 1.36 million Tether (USDT) directly to the USDT token’s smart contract address on Ethereum. This incident is particularly notable because the user had made a test transaction of 100 USDT just before the mishap.

Typically, tokens sent directly to a smart contract address where the tools to perform such transfers do not exist are considered irreversibly lost. This is because token contracts generally lack sweeping. As expected, the USDT token contract does not have such a function.

However, the USDT token contract includes a destroyBlackFunds function. This function acts as a safeguard that allows the owner of the contract to remove certain USDTs from circulation at any blacklisted address. While blacklisting is a security measure that prevents certain addresses from sending USDT, these addresses can still receive USDT. Interestingly, the USDT contract address itself is marked as blacklisted.

Realizing the mistake, the user shared the incident on Twitter. Tether’s CEO, Paolo Ardoino, responded to the situation and stated that there may be a way to solve this problem.

When the data is examined, it appears that the USDT contract address is performing a transaction using the destroyBlackFunds function. This shows that Ardoino is taking action to recover the funds.

However, as of now, there is no record of the lost funds being mined again by Tether.

*This is not investment advice.

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