Tether returned a million due to a transaction error
As far as you know, the modern cryptoindustry is a rather complex system that welcomes newcomers, but requires them to strictly adhere to their own rules. For example, you need to remember about the irreversibility of digital transaction. Blockchain transactions cannot be refunded, however, some companies ignore this basic rule. Today, stablecoin Tether refunded money to the account of a user who mistakenly transferred 1 million USDT to the wrong recipient. The event is truly significant, so let’s take a look at all its details. So let’s get started.
An error occurred while working with a smart contract. A user who conducted a transaction for a fairly large amount – $ 1 million in cryptocurrency, faced his own inattention. The transaction went to the wrong address, which is why the sender immediately wrote to the technical support service. It is surprising that the developers, in principle, set about handling the incorrect transaction. The fact is that the funds went to a non-existent account, that is, they simply hung in the air. That is why refunds have become possible.
Otherwise, if the money were transferred to a real user who would withdraw a million dollars, the transfer would be irreversible. It is still unknown how an unlucky user could have made a mistake in transferring such a large amount. The error is most likely due to a misunderstanding of the company’s working account. The funds went directly to the firm’s working contract, not to the checking account.
However, now everything is fine. The erroneous money was returned to its rightful owner, and the Tether developers released a post on Twitter. In the latter, the project’s CTO recalled that the smart contract is at your own risk. The head of the company urged to be more careful and clearly check all the data required for payment. After all, not every transfer can be canceled. Nevertheless, the very fact of the return of the transaction creates a conflict with the principles of the Blockchain: does Tether, in principle, have the right to use the Blockchain, but at the same time go against the system and return the funds? Let’s figure it out.
We evaluate the event. Role in the future of the industry
In fact, there is nothing wrong with canceling the transfer. Progress does not stand still, constantly moving forward. And the crypto industry is no exception. If Tether can provide such functionality that is designed even for inattentive beginners, this sets the company apart in a beneficial way. Note that USDT tokens are built on the ERC-20 protocol, and therefore, technically, any incomplete transfer can be canceled. However, in situations where the recipient accepted the transaction and withdrawn the funds, it will no longer be possible to return the money.
That is why we recommend that you carefully check the details so that, if you notice an error, you can immediately contact the technical support of the company. Also an important factor in the last event is the amount of the transfer. A million dollars in cryptocurrency is a lot of money that really deserves more attention. So there is nothing surprising or wrong with the actions of Tether representatives.
We have no doubt that soon such large coins as Ethereum, Bitcoin or Ripple will begin to implement functionality that allows you to cancel transfers. It is really convenient, lowers the threshold for entering the cryptoindustry and will help new legal entities and individuals master the Blockchain. Don’t miss such events. Follow all the industry news with us. We publish only high-quality and interesting material. Thanks for your attention. Good luck!