The stablecoin issuer has fully compensated users for all erroneous USDT transactions since 2014. In this case, a commission of $ 1000 is charged for the return.
Tether CTO Paolo Ardoino
clarifiedthat users have been refunded all US dollar assets that they sent by mistake since the launch of USDT.
“Some users make mistakes when sending tokens to DeFi projects or trading platforms, resulting in transactions to smart contracts or addresses that do not have a return function.”
Ardoino noticed that only this week Tether
returned almost $1.5 million thanks to the recovery mechanism. This solution allows the operator to blacklist addresses on the Ethereum and Tron blockchains, block assets on those addresses, and send new USDT tokens to affected users.
“As part of the recovery process, Tether is blacklisting the address in order to recover the token. The program will void all USDT held at that address and reissue the equivalent amount of USDT to the escrow address in order to process and return the tokens to their rightful owner. For security purposes, Tether requires proof of ownership in order to initiate a recovery.”
Recovering USDT sent to the wrong address is not a free service. According to the information on the project website, the stablecoin issuer charges $1,000 or up to 10% of the refund amount, whichever is greater. This means that the issuer’s fees for the return of users’ assets amounted to $8.7 million. Tether only accepts requests to recover amounts greater than $1,000.
Apart from the recovery mechanism, Tether also blacklists addresses for regulatory reasons. For example, last week Tether blocked three Ethereum addresses containing USDT worth more than $160 million. Ardoino added that the issuer is working closely with law enforcement and can freeze assets at their request to help the investigation.
Earlier this month, Tether blacklisted an address holding over $1 million in USDT. The reason for this decision is the request of regulators, but the company did not provide details.
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