Tether rushed to the aid of the user who sent 1 million USDT tokens to the wrong DeFi address. The user, who thinks that he lost 1 million USDT and that this is irreversible, got rid of this mistake cheaply with the help of Tether.
A Chinese cryptocurrency investor wanted to use his $ 1 million USDT to produce yield farming. For this, the trader chose a platform called Swerve, which was split from Uniswap via fork. Trader; decided to send its 1 million USDT to the Swerve network. However, something went wrong during this process.
Swerve users have to send money to the liquidity pool on the platform before they can yield farming. This Chinese trader mistakenly sent his money to Swerve’s smart contract. The trader has thrown away the 1 million USDT, so to speak, because of this transaction. Because in DeFi applications, no intervention can be made to users’ accounts or transactions. But the same is not true for CeFi (central finance) applications.
Chance Gone Slow
A CeFi manager came to the aid of this trader who lost $ 1 million. Bitfinex and Tether CTO Paolo Ardoino saw what happened to this trader and intervened on social media. Emphasizing that this transaction is made with USDT, Ardoino; He said it might be possible for them to return this money to its owner.
Tether team investigating the Chinese trader’s transaction; found that this transaction was ERC-20 (Ethereum based) compliant. The team, who then started to follow the transaction, realized that this $ 1 million USDT was “stuck” at an address. Tether, which has a central structure; After all, he returned the money to the user. Making the announcement of this on his social media account, Ardoino urged DeFi users to be cautious.
It sparked controversy
Hundreds of DeFi users are losing thousands of dollars each day looking to make money by yield farming. This Chinese trader was just one of those people who lost money on yield farming. The fact that Tether stepped in and directly intervened in this incident led to “complex” reactions in the cryptocurrency community.
Some cryptocurrency users have said that too many people have lost money due to DeFi, it is a good thing that Tether made a refund to this tradera. Some users found it alarming that Tether has such a central authority. As such, the question “Should cryptocurrency organizations such as Tether have the power to intervene in such situations?” Divided the cryptocurrency community.