Tether ‘s Centralized Power Helped to Refund $1 Million in USDT
$1 Million worth of stablecoins mistakenly sent to the wrong address, recovered with the help of Tether.
Due to the centralized nature of the USDT platform, the recovery was possible. Many crypto enthusiasts criticized the centralized design of the Tether cryptocurrency. With the recovery of the lost stablecoins, the usefulness of the centralized design has proven its worth.
Swerve Finance and Tether
The CTO of Tether – Paolo Ardoino tweeted last Friday that Tether helped to return $1 million worth USDT tokens to a Group of anonymous Chinese Traders. The traders have sent the USDT to the contract address associated with Swerve Finance. Swerve Finance is a clone of the Curve Finance token and it is intended to start and operate with a more equitable token distribution. Though the target address accepts some stablecoins for the DeFi stablecoin swap protocol, this address is not set up to receive Tethers.
When the Tether tech support team confirmed that sent tokens could not be recovered from the Swerve Finance contract, the address was frozen. This revoked the ability for that address to receive or sent USDT. By doing that they made sure that the lost tokens will not enter the circulation. However, if at some point Swerve starts to accept USDT they can replace the address to accept USDT deposits.
Digital assets that are pegged to another asset can be defined as stablecoins. The stablecoin that pegged against the US dollar is USDT. These stablecoins are grasping so much attention during the year 2020. There is more than $14 billion Tether in current circulation.
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