Accidental USDT Transfer Results in $1.36 Million

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[A user accidentally sent USDT to the contract address, burning US$1.36 million]

A cryptocurrency user accidentally transferred 1.36 million Tether (USDT) to a USDT smart contract address on Ethereum, shortly after completing a 100 USDT test transaction.

Typically, if you send a token directly to a smart contract address without configuring the function to perform the transfer, the token will be considered an irreparable loss since most token contracts lack recovery functionality. However, the USDT contract has a feature called destroyBlackFunds that allows the contract owner to remove USDT from any blacklisted address. It is worth noting that the USDT contract address is set as a blacklist.

When the user realized the mistake, they made it public on X. Tether CEO Paolo Ardoino responded that a solution may exist. Inspection of the transaction data shows that the destroyBlackFunds function is being used, indicating that Ardoino is trying to recover the funds. There is no record of funds being withdrawn.

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