Saturday, March 25

Investor loses BRL 2.6 million after sending cryptocurrency to wrong address

While the cryptocurrency market continues to gain strength and popularity, there are still some issues that harm certain users and that still raise several discussions about how the market may or may not evolve. In a recent case, a User lost $500K (about BRL 2.6 million) in WETH (Wrapped Ethereum) after making a mistake at the time of transfer and sending to the wrong address.

The user, who even asked for help trying to understand what happened to Reddit, apparently wanted to make a transfer to someone else or even another of his addresses.

However, he got the recipient’s address wrong and ended up sending 195 WETH to the Wrapped Ethereum contract address. Transaction that was confirmed in 30 seconds and in those quick seconds, the investor’s half million dollars were lost forever.

Details of the transaction carried out by the user who ended up losing a fortune in WETH.

Wrapped Ethereum

WETH, Wrapped Ethereum is a cryptocurrency backed by Ethereum, however it is developed on another network, outside the Ethereum mainnet and is widely used for those who do not have to pay so many fees or have to wait so long for confirmation (especially when the blockchain Ethereum is congested).

Like other blockchains, WETH has a contract with an address that is used for different types of transactions, even for “burning coins”.

Amounts sent to a contract address are unrecoverable. That is, the money that the investor sent to the contract address was lost forever.

Mistake that divided the community

The error, which is not uncommon among cryptocurrency users, ended up splitting the opinion of Reddit commentators who were between defending third-party solutions and ways to ensure that this type of problem doesn’t happen again, and others who believe it’s up to the user. learn the details of the technology.

“Dealing with private keys and smart contract addresses is pretty low-key, honestly. Mainstream cryptocurrency adoption needs wallets + recovery + intuitive UIs and (for better or worse) third-party escrow solutions.”

For others, adopting this type of solution is precisely contrary to all the ideals of the cryptomarket and that the third-party custody service defeats the entire purpose of financial independence that Bitcoin proposes.

After all, should the crypto market be more bank-like just to improve adoption?

“Having a companion protecting you from your stupidities or not having a companion ‘protecting you’ from the things you really want to do – Pick one.”

With this, it is important to always be careful with all your transactions and study as much as possible to avoid any such error, after all the damage can be great.