Main navigation

KuCoin Accidentally Burned Millions Worth of Ethereum (ETH), No One Knows Why

Tue, 05/30/2023 - 08:54
article image
Arman Shirinyan
KuCoin proceeds to burn millions worth of Ethereum with no distinctive reason
KuCoin Accidentally Burned Millions Worth of Ethereum (ETH), No One Knows Why
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Last year in September, a mystery enveloped the crypto world when a startling event transpired on the KuCoin exchange. In a bizarre set of transactions, the popular cryptocurrency exchange inadvertently sent a staggering amount of Ethereum (ETH) — worth tens of millions of dollars — to the Ethereum burn address. Even more surprisingly, it seems this substantial mishap has gone largely unnoticed until now.

The Ethereum burn address, also known as the null address, is essentially a black hole in the blockchain universe. It is an address where tokens can be sent but never retrieved, effectively removing them from circulation — hence the term "burning."

Given the exchange's crucial role in securing significant volumes of digital assets, such a transaction raises questions. However, the exact motivation behind this transfer remains elusive, as there is currently no available information to provide insights into the underlying causes.

These unexpected burns occurred over three days, starting on Sept. 7, 2021, and encompassed over 3,500 transactions of USDT (Tether) and ETH. While this incident raises a plethora of questions, the most significant one is: Why? What could possibly lead to such a mistake, or was it intentional? At this stage, answers are unknown.

XRP Breaking Through, But Will This Rally Last?

One hypothesis suggests that KuCoin may have reached a one-off agreement with Bitfinex, the company behind Tether, to redeem USDT. This theory, however, fails to explain why ETH was also sent to the burn address.

Another conjecture points to a potential system glitch or an error in an automated process that caused this unusual movement of assets. Regardless of the speculation, the mystery of why KuCoin would burn such a substantial amount of ETH remains unresolved.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.