2023-05-30 16:36:47
Last September, a mysterious thing happened in the crypto world. Cryptocurrency exchange KuCoin has come under the spotlight following a series of bizarre transactions. The popular cryptocurrency exchange accidentally sent an incredible amount of Ethereum (ETH) – worth tens of millions of dollars – to the Ethereum token burning address.
Even more surprisingly, this major scam seems to have gone largely unnoticed by the cryptosphere until now. The so-called Ethereum A burn address, also known as a null address, is essentially a black hole in the blockchain universe. This is an address that crypto exchanges usually send tokens to when they want to withdraw them from circulation. The coins sent here can never be decrypted once more, they are essentially “enough”, hence the term “burning”.
Given that the exchange moves a significant amount of digital assets, such a transaction raises many questions. However, the exact motivation behind the transfer remains unclear, as no information is currently available to provide insight into the root causes.
These unexpected burns occurred over three days starting on September 7, 2021 and involved more than 3,500 USDT (Tether) and ETH transactions. Basically, everyone is wondering why KuCoin sent millions of dollars of ETH to this address. If an error occurred, what might have led to such an error?
The according to one hypothesis KuCoin may have entered into a one-time deal with Bitfinex, the company behind Tether, to redeem USDT. However, this theory does not explain why ETH was also sent to the burn address. Another hypothesis points to a possible system error or error in an automated process that caused this unusual movement of the devices. If there was a technical error, why didn’t the stock exchange make it public?
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