Paolo Ardoino claims Tether would be able to recover $ 1 million ERC-20 USDT stuck in an Ethereum address
After a user mistakenly sent $ 1 million USDT to the Swerve token contract, CTO Tether, Paolo Ardoino, contacted the community and said the company would restore the ERC-20 USDT token stuck in an Ethereum address. This move received support from the community but inadvertently sparked a serious debate about the concentration of some cryptocurrencies. At the same time, it raises lingering dangers if this property is continually popping up and the effects it could have on the cryptocurrency industry.
Hero Tether rescued 1 million USDT trapped in Swerve
Swerve Fi is one of the latest DeFi protocols to emerge in the rapidly growing fork market. And recently, this project had its first controversy earlier today. Specifically, a protocol user mistakenly deposited $ 1 million USDT in Swerve’s token contract.
Good news for the YOLO farmer: Tether is gonna make the guy whole.
— Platonic NEET (@Crypto_Plato) September 8, 2020
One Twitter user shared excerpts from a chat with Swerve on Discord. In it, another user posted a confirmation of the transfer of 1,010,808 USDT.
The user’s identity has yet to be determined. That’s why the tokens were sent to Swerve’s token contract in the first place. Swerve is an offshoot of Curve Finance – an extremely successful DeFi protocol – but 100% of the platform’s governance token is distributed to the community through liquidity mining and DAO rewards.
Paolo Ardoino, CTO of Tether and Bitfinex, urged the trader to send a ticket to Tether’s support service to arrange the transaction. Ardoino explained that if the lost funds were ERC-20 USDT tokens and were stuck in an Ethereum address, Tether could afford them.
Just to be sure, if the person directly interested in this issue can provide the ticketID here, we can be sure of prioritizing it due to the amount involved.
— Paolo Ardoino (@paoloardoino) September 8, 2020
He also said that if traders provide the ID ticket of the transaction early, Tether can prioritize solving that problem
Is decentralization just a phrase?
The news of $ 1 million resilience shocked the crypto community. In it, hundreds of people consistently praised Tether for both its quick information updates and impeccable customer service.
Dozens of users have reached out to Ardoino to inquire about their own scammed or lost transactions. Someone directly asked how long it would take to get their lost money back. According to Ardoino, retrieving failed transactions usually takes several weeks, and recovering USDT from token contract addresses is not an issue for Tether.
Meanwhile, the rest of the crypto community is not too satisfied with how this problem is handled. Although Tether is a private company with the freedom to control USDT, many people criticize it for its lack of decentralization.
Hundreds of users have warned that if this is widely accepted, it will be entirely impossible to prevent Tether from maliciously manipulating USDT in the future.
This incident emphasizes that DeFi is not a bargain for the financial world as most users are technically incompetent to protect their assets.
- Average Daily Transfer Value For Tether Exceeded That For Bitcoin And PayPal In August
- The Current Supply Of Stablecoins Has Been Increasing By Roughly $100 Million Daily For Almost Two Months