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Transfer Error Worth $36 Million in Crypto Sent to Ether Blockchain

Fri, 05/06/2022 - 11:11
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Tomiwabold Olajide
3 million JUNO tokens worth $36 million were seized from the wallet of a whale
Transfer Error Worth $36 Million in Crypto Sent to Ether Blockchain
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A copy-paste error by a developer of the Cosmos-based Juno blockchain has yielded $36 million in crypto to an inaccessible address on the blockchain.

Three million JUNO tokens worth $36 million had been seized from the wallet of a whale (large holder) by the name Takumi Asano, accused of gaming a community airdrop.

Instead of being sent to a wallet controlled by Juno token holders, who would then vote on how the money would be spent, the funds were accidentally sent to an address that no one could access.

Andrea Di Michele, one of JUNO's founding developers, explained the incident, stating that when he gave the developers the address of the [Unity] smart contract, he had pasted the address of the smart contract while putting the transaction hash underneath it.

He did not, however, specify the transaction hash, leading to a mix-up between the smart contract address and the transaction hash.

According to Dimi, developers mistakenly copied the transaction hash—which looked identical to the wallet address—rather than the address itself. As a result, the seized funds were moved to a part of the Juno blockchain where no one could access them.

Interestingly, of JUNO's over 125 validators, not one appeared to notice that the Unity address was pasted incorrectly. To be included in the chain, "validators" must validate each transaction, which is encoded in "blocks."

Developers have developed ways to reverse transactions in the past, but the solutions are not straightforward. Because JUNO is a Proof-of-Stake chain, the problem may be easier to fix for its engineers. JUNO operates on a governance model in which token holders can vote to change blockchain transactions, and changing direction might require a majority vote and a software update.

According to reports, a fix is in the works, but it might take at least a week.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.