One of the biggest fears of crypto market traders happened on September 8. As Chinese merchants mistakenly sent a 6-digit amount to the wrong DeFi address. However, everything was resolved thanks to centralized finance. And so Tether recovered $ 1 million USDT.
The world of cryptocurrencies is highly volatile. So the most conservative investors do not have enough confidence to fully enter the market. This is where Stablecoins are born.
These “tokens” that are associated with the value of a ‘fiat’ currency (such as the dollar or the euro), with material goods such as gold or real estate, or another cryptocurrency, provide users with that necessary trust.
Being Tether the most recognized of the Stablecoins. And today we will tell you about a controversy that included Tether and the DeFi.
An accidental $ 1 million USDT shipment on Tether
Accidental shipments in the crypto ecosystem are an everyday occurrence, as traders sometimes get carried away by market volatility. It is a mistake that has made us all swallow short.
Now, imagine that little mistake of not checking carefully where the transfer will be sent costs you $ 1 million USDT.
Well, that happened on September 8 to the group under the nickname “Bill.” They “accidentally” transferred the money to a Swerve token contract and for a moment, they believed that money was lost.
Desperate, the merchants sent an SOS on Twitter and hoping the controversy would be resolved. And luckily, they were lucky, getting their money back.
Since, Paolo Ardoino, CTO of Bitfinex and Tether, issuers of the USDT centralized stablecoin, in which this erroneous payment was made, responded and requested that “Bill” open a support ticket.
“If it’s USDT ERC20 stuck in one direction, we should be able to get it back, but to be safe, please contact our customer service and we will do our best,” he said.
And then a few days later, on September 11, the good news arrived, mixed with doses of caution. Ardoino tweeted the following:
The highlight of that tweet is Ardoino’s clear warning message about DeFi. Since, for him, decentralized finance is a risk for crypto users.
“This was resolved, thanks to the fact that Tether is a centralized financial network”
Tether was able to recover the lost funds because the platform is based on CeFi, which gives it some control over user funds. Function that a non-custodial DeFi platform would not.
For the defenders of centralized finances, the security and secure monitoring of the transactions of its users is their flag to defend. So this could be seen as a victory for the centralized finance team.
Finally, the Etherscan transaction shared by Ardoino shows that a total of 1,010,808 USDT, valued at $ 1.02 million, was sent to Chinese investors.
What do you think about Tether managing to recover $ 1 million USDT in record time?