Home / Altcoins / Tether In Deep Trouble, ‘Mistakenly’ Mints 5 Billion USDT And Burns Them

Tether In Deep Trouble, ‘Mistakenly’ Mints 5 Billion USDT And Burns Them

A rather shocking transaction has come to light, that created 5 billion Tether (USDT) turned out to be an error, though it still shook the market. The intention of Tether, Inc. was to create an additional 50 million tokens to transfer to the TRON network. Subsequently, the extra USDT was burned, while blaming the error on the TRON network and problems with decimal numbers. The total supply on the TRON network remains around 87.9 million.

Whale Alert — a Twitter account dedicated to reporting large cryptocurrency transactions — noted that 50 million USDT tokens were transferred from cryptocurrency exchange Poloniex to the Tether Treasury via the Omni protocol on the Bitcoin (BTC) blockchain. The account subsequently reported that Tether Treasury minted 5 billion USDT tokens on the Tron blockchain, after which it burned them.

Following this, Tether minted another 50 million USDT on the same chain, burned another 4.5 billion USDT, and finally transferred 50 million Tron-based USDT tokens to a wallet presumably belonging to Poloniex.

In a tweet, Tether CTO Paolo Ardoino explained that Tether meant to perform a swap of 50 million Omni-based USDT tokens to the Tron blockchain, but a mistake was made with the decimals. Cryptocurrency exchange Poloniex confirmed in a tweet:

“Paolo is correct — this occurred while Poloniex was conducting a USDT chain swap with the help of Tether. An incorrect amount of USDT was accidentally minted, and this has since been resolved to the intended value.”

Tether has also stated its intention to migrate some of the USDT to the Ethereum network, where already 1.4 billion tokens have been created. The migration will be partially supported by Binance, which is now moving its USDT balances into Ethereum-based wallets, after phasing out its Omni Bitcoin-based wallets. All users will only be able to withdraw Ethereum-based USDT, in essence going through a token swap.

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About Umme Haani

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Vinayak Buckshee is a writer for Thecoinrepublic. she contributes a researched piece on cryptocurrencies and updates. Umme is an aspiring engineer who immensely enjoys writing and technical writing brings the best of both worlds under one roof for her.

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