$ 20,000 in BNB burnt by accident; Binance will “take care of” the problem

Someone mistakenly sent $ 20,000 in BNB to the wrong Binance Smart Chain address, permanently losing their coins.

Changpeng Zhao posted a tweet about asking for help from this user, revealing a deep ethical dilemma.

He ultimately said Binance will take care of the problem

The CEO Binance , Changpeng Zhao (CZ), revealed that a user of the exchange was accidentally sent to a smart BNB 800 contract address on Smart Chain Binance, losing its final pieces.

In a tweet, Mr. Zhao revealed that the user pleaded for the platform to help him recover his lost coins, worth $ 20,000.

A guy just mistakenly sent 800 #BNB ($ 20,000) to a smart contract address on Binance Smart Chain. They are now burnt (permanently blocked). He is now begging us to help him. We could put it back on its feet by deducting this amount from the next BNB to burn. Should we do it?

It seems that Changpeng Zhao finally decided to help this user.

To burn or not to burn

Zhao’s decision to seek the advice of the community on how to resolve the issue started as a side conversation about how to deal with similar incidents in the future. While some users argue that these coins should not be refunded due to the immutable nature of blockchains, others have argued for a more humane approach to the problem.

As the CEO suggests, Binance had two options: follow the rules and let the user know that their coins were sadly lost forever, or bypass those regulations a bit and pay them back by deducting the amount of the next BNB to burn. Unsurprisingly, this led to a split in public opinion, as some respondents preferred the pure option from an ideological point of view.

If he reimburses it, a week later, same error. What choice would he have? The rules are supposed to be clear. There are exceptions, yes, but it’s up to CZ’s decision himself and he’ll have to take the backlash of not doing it for others later.

Others warned that a “Sorry, be more careful next time” approach would only hurt the growing adoption of cryptocurrency, making it seem like it is based around dogma rather than dogma. people’s needs. Others, again, simply wanted clear and precise communication from Binance, outlining its policy for such events in the future.

A few days earlier, Mr. Zhao said that the exchange will add a function to prevent this kind of error from happening in the future.

We will be implementing a feature to prevent people from sending funds by mistake to contract addresses we support from #Binance.

We also refunded people who inadvertently sent BNBs to the smart contract address when we switched back to mainnet. Someone won $ 250,000.

The growing value of erroneous transactions

This is the second time in a few days that a large amount of crypto has been sent to the wrong address, which, in theory, causes the sender to lose it permanently. In early September, an anonymous user accidentally sent a million US dollars to Swerve’s governance contract, which, at least on paper, made the funds unrecoverable.

This time around, Tether’s CTO Paolo Ardoino vowed to fix this million dollar error if it was ERC-20 tokens, in which case they could be salvaged. The Ethereum blockchain’s 0x0 address, which is made entirely of zeros, is known to contain tokens worth over $ 635 million , including over $ 3 million in ETH.