Novice DeFi user lost 1 million USDT with a simple error

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The novice user who sent $ 1 million worth of USDT to a DeFi protocol’s smart contract lost access to all of that money.

A possibly irreversible bug that a user fell off today revealed how easy it is to lose money on DeFi without fully mastering its apps.

A novice DeFi enthusiast sent 1 million USDT directly to DeFi app Swerve Finance’s smart contract. The tokens that users send to a smart contract address cannot be received even if the contract owner requests it. Preventing this is only possible if the contract in question has a function that allows the transfer of tokens. Swerve Finance does not have such a function. On the other hand, another recovery method might be that Tether, the issuer of USDT, freezes the funds at the address and re-send them to the unfortunate user.

Paolo Ardoino, technology director of Tether and its sister company Bitfinex, said that the person behind the 1 million USDT transfer said they would do their best to save the tokens by telling them to open a support ticket in the Tether support service.

Just a week ago, a similar bug happened to a Gate.io user. USDT worth of 400 thousand dollars was sent to the smart contract address of the popular DeFi platform SushiSwap. The developer of SushiSwap, known by the alias “Chef Nomi”, called out to this user, “Do you know there is no way to get them back?” he said.

Everything about DeFi is in the last part of the Bitcoin 2140 podcast, prepared by Uzmancoin with the contributions of BtcTurk. Blockchain Researcher Çağın Dönmez tells about DeFi’s curiosities. Listen now:

See Also
DeFi Tokens Analysis: August 21, 2020

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