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 noteworthy because the user had made a test transaction of 100 USDT shortly before the incident.
Typically, tokens sent directly to a smart contract address where the means to perform such transfers do not exist are considered irreversibly lost. This is because token contracts generally lack sweep. As expected, the USDT token contract has no such function.
However, the USDT token contract includes a destroyBlackFunds function. This feature serves as a safeguard that allows the contract holder to remove certain USDT from circulation at any blacklisted address. Although the blacklist 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 CEO Paolo Ardoino reacted to the situation and said that there may be a way to solve this problem.
When the data is examined, it appears that the USDT contract address is executing a transaction using the destroyBlackFunds function. This shows that Ardoino is taking action to recover the funds.
However, at the moment, there is no sign that the lost funds have been mined from Tether again.
*This is not investment advice.
