Crypto User Loses $25 Million Due to Simple Wallet Mistake

A cryptocurrency user recently made a costly mistake, losing $25 million by accidentally sending Renzo restaked ether tokens to the wrong address.

Instead of sending the tokens to their safe wallet, the user mistakenly directed them to the platform’s safe module, locking the funds in a contract that cannot be accessed without intervention.

In an urgent plea on social media, the user appealed for help, offering a reward of 10% of the funds, which is about $2.5 million at current prices, for anyone able to recover the lost tokens. Renzo, the platform involved, is designed to simplify restaking on Ethereum and Solana.

Had the user chosen the correct wallet, they would have been able to control the funds, but now they are locked in a contract that cannot be accessed without Renzo’s help.

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The founder of DeFiLlama, known as 0xngmi, responded, suggesting that the only way to recover the funds would be for Renzo to update the contract with a function that would allow the user to retrieve their tokens.

The error occurred when the user attempted to use a bot to withdraw funds, and a simple copy-paste mistake led to the disaster. As one of Yearn’s developers, banteg, humorously pointed out, this is a mistake that could easily happen to anyone, though its consequences are severe.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.