Investor Loses $25M Due To Misplaced Crypto Transfer, Says CEXs Feel More Secure
In a costly error, an anonymous cryptocurrency investor known as “qklpjeth” recently lost $25 million after mistakenly transferring funds to an inaccessible contract address, prompting the investor to emphasize the relative safety of centralized exchanges.
What Happened: “Staking on centralized exchanges feels more secure since on-chain staking still carries significant risks,” qklpjeth told Benzinga.
The misstep occurred on June 19, when 7,912.31 ezETH, a restaked Ethereum (CRYPTO: ETH) token issued by the Renzo protocol, was accidentally sent to the wrong address.
The user explained that a simple error in copying and pasting an address resulted in the funds being locked away permanently.
“The funds were sent to a contract address that cannot be accessed,” said qklpjeth, adding that “the error happened simply because the wrong address was copied.”
Despite months of attempts to contact Renzo protocol for assistance, no progress has been made.
The investor even issued a public appeal, offering a 10% reward, or $2.5 million, to anyone who could help recover the locked funds.
Also Read: Bitcoin To Peak At $180,000, Says VanEck’s Head Of Digital Assets Research
Why It Matters: The irreversible nature of such errors in the DeFi space has drawn the attention of industry experts.
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