An unfortunate click costs him $100,000 in cryptocurrencies

An innovative solution for a classic mistake – A Binance user loses $98,000 in USD Coin (USDC) by making a mistake during a transaction. Nothing surprising so far, the cryptosphere has seen it all before. But the intervention of Binance and its “Angels” will finally put a positive spin on this story.

The sending address error, a sadly classic nightmare in crypto transactions

Damien’sstory begins with a “classic” scenario that any cryptophile could experience. The day of May 19, 2021 starts out rather well for this French Binance user, who heads a “productive” yield farming. He is about to transfer his $98,000 in USD Coin from his MetaMask wallet to his Binance wallet.

However, Damien makes an infamous mistake when he tries to convert his USD Coin to Tether (USDT). He entered the wrong destination address and only realized the error after completing the transaction on MetaMask. An unfortunate copy and paste made him enter the address of the USDC smart contract instead of his Binance wallet.

Decentralization has its advantages, but also its disadvantages, as it is usually very complicated – if not impossible – to get your funds back if you make a mistake when trading on a blockchain. Damien does some research and finally decides to share his misadventure on the French-speaking Telegram of Binance, which has over 23,000 people. The community is moderated by the Binance Angels, ambassadors of the platform who, as we will see in a moment, have rarely worn their name so well!

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A pre-burn refund to fix mistakes

Binance Angels informs Damien of a possible recovery of his funds, provided that they do not meet the criteria of the NBB Pioneer Burn Program:

  • the lost tokens must be either BNB or wrapped equivalents like WBNB, or tokens indexed to another asset like BTCB, a token indexed to Bitcoin (BTC), supported by Binance’s Token Canal project;
  • lost tokens must have been sent to verifiable BEP20 contract addresses on bscscan.com for transparency purposes;
  • Lost tokens must be the result of an “honest mistake” and must be more than $1,000 but less than the NBBs intended for the burn for the upcoming quarter.
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This program is designed to assist in the recovery of funds from errors on the Binance smart chain (BSC). Binance covers losses for cases that it considers to be “bad”.re eligible for its bailout program. The lost cryptocurrencies will then be counted in its quarterly burn operations. So the story ends well for Damien who, eligible for the program, has his funds refunded by Binance, 24 hours after his mistake.

Binance has set up a system that does not fundamentally question decentralization while allowing for the correction of… human errors. BlockFi would certainly have appreciated this type of program, when it made people happy by inadvertently sending Bitcoins to dozens of people.

We hope you never lose $100,000 on a misunderstanding! In the meantime, if you’d rather earn up to 100 euros offered in cryptocurrencies, Swissborg is giving it away for every new registration on this leading crypto platform: (affiliate link, for a minimum deposit of 50 euros)