Last Updated on June 22, 2024 by COINBUZZFEED
In an unfortunate mishap that has left the crypto community stunned, 2024.qklpj.eth inadvertently transferred 7912 ezETH, worth approximately $27.96 million, to a contract address, rendering the funds irretrievable. This incident highlights the risks and complexities associated with handling large-scale cryptocurrency transactions.
The Costly Error
The incident occurred when 2024.qklpj.eth mistakenly sent 7912 ezETH to a contract address that cannot facilitate withdrawals. The funds are now locked in the contract address 0xe9a0c4aece76d487f3c00241eb74467cdce696c4, labeled by Arkham as CoboSafeAccount. This address is designed to be non-transferable and non-upgradable, resulting in a complete loss of access to the substantial amount of ezETH.
Background on the Transaction
Three days prior to this costly error, 2024.qklpj.eth had transferred 5477 ezETH to the multi-signature address 0x5E6…A1c19. It is believed that a custom contract was written to expedite the redemption process, which was successfully executed in multiple transactions.
However, during the execution of this contract, a significant portion of the funds was accidentally sent to the intermediary contract address 0xe9a0c4aece76d487f3c00241eb74467cdce696c4. Given the nature of this contract, the funds are now irreversibly locked, creating a dilemma with no straightforward solution.
Such incidents underscore the need for improved contract design and security measures to prevent accidental fund lockups. For individual and institutional investors, it is a cautionary tale about the risks inherent in the decentralized finance (DeFi) space.
The accidental transfer of 7912 ezETH by 2024.qklpj.eth to an unrecoverable contract address has resulted in a substantial financial loss, with approximately $27.96 million now locked away permanently. This incident highlights the critical need for robust transaction protocols and heightened vigilance in the rapidly evolving world of cryptocurrency.
