AltcoinCryptocurrencyCryptocurrency FundDeFiNews

An AAVE Holder Lost $1.1 Million Worth of the DeFi Token by Mistake

A user from the decentralized finance (DeFi) industry has just lost an amount of $1.1 million in AAVE by mistake. The AAVE user sent a large number of coins to the smart contract address of the token mistakenly where it got locked forever and the user eventually lost it. TokenOops, a service whose task is to ‘track ERC20 tokens transferred to the address of the ERC20 token itself’ found about this erroneous transaction and reported it via a tweet on the 18th of October.

Start Trading

As per the report, a user of AAVE the native token of the popular decentralized finance protocol Aave transferred mistakenly 28,050 AAVE tokens to the contract address of the token instead of sending them to the desired wallet address. The user did not send these tokens to the contract address intentionally rather they went there accidentally.

Source: Twitter

Reportedly, the user was not even aware of the fact that he was making a mistake. This amount which is worth approximately $1.1 million is now locked on the blockchain forever and cannot be extracted. This means that the respective AAVE user can no longer access these funds.

📰  EFCC Places Suspected Crypto Scammer On Wanted List

Commenting on this incident, the Enterprise Architect at the Federal Reserve Bank of Chicago Chase Wright said in a tweet that this incident is just like you want to send a letter to the address you desire but eventually mail it to the address of the post office. He said:

“The key here being that the AAVE was transferred to the address of the contract itself, and not another account… It would be like mailing a letter to the post office’s address instead of the address you wanted to send it to. Only there is no “return to sender” option.”

The interesting point to note here is that this transaction was made a few weeks ago on the 3rd of October and no one noticed it until TokenOops reported it on Sunday. It is common to lose a few hundred dollars in such kind of erroneous transactions but to lose millions is a huge blow for the victim.

📰  Albany Airport Unveils Wellness Trace App To Ensure Prompt Obedience Of COVID-19 Guidelines

MubaShar Nawaz (United Arab Emirates)

MubaShar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button