The issuer of the largest stablecoin by market capitalization, Tether, has since the start of the year returned USDT worth $5 million to users who sent funds to the wrong address. Reported by The Block.
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The chief technology officer of Tether, Paolo Ardoino, told the publication that last week, in a single day, he helped return funds to 12 users. He says the minimum amount for recovery is 250 USDT.
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Recently Tether returned USDT worth $1 million to a user who sent funds to an incorrect address for the Swerve.Finance project.
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“Sometimes users may accidentally send transactions to incorrect addresses, resulting in the tokens becoming inaccessible. If a user contacts Tether, we can start an investigation. We can help recover tokens if there are grounds for it,” Ardoino explained the procedure. “During the investigation, the sender’s address is analyzed using analytical blockchain tools, and the user must prove ownership of that address.”
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According to him, Tether cannot move funds from one address to another. However, thanks to the features of Ethereum and Tron smart contracts, the issuer has the ability to freeze “stuck” tokens, issue new coins and send them to users affected by carelessness.
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ForkLog readers approve of such a practice, despite it clashing with the principles of decentralisation and personal responsibility for one’s funds.
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A significant portion of USDT is also issued on Algorand, EOS, the Liquid Network, Omni, OMG Network, and Solana. In such systems, this is not feasible, and consequently not all Tether tokens can be returned to users.
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Earlier ForkLog reported that Tether will move 1 billion USDT from the Tron blockchain to Ethereum.
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