A Cryptocurrency user accidentally lost $25 million by sending Ethereum tokens re-staked on the Renzo platform to a security module instead of his secure wallet.
Renzo is a liquid re-staking platform designed to facilitate the re-staking process on networks like Ethereum and Solana, allowing users to maximize their profits. However, in this case, an incorrect transaction led to funds being locked in a contract that the user cannot access without technical intervention.
In a desperate message on social network “I offer a 10% reward, approximately $2.5 million, to whoever manages to recover the funds.”
The error was due to an oversight in the transaction process, in which the user mistakenly copied and pasted the security module address instead of their wallet address. Under normal circumstances, funds sent to the correct secure wallet address would allow the user to maintain full control over them. However, by being sent to a security module, the tokens are now permanently locked in a contract from which they cannot be extracted without assistance from Renzo’s team.
0xngmi, founder of DeFiLlama and a well-known developer in the DeFi space, responded to the message saying that the only solution he sees is for Renzo’s team to update the contract and add a special function that allows the locked funds to be released.
This type of intervention requires a change to the Renzo smart contract architecture, which could take time and direct collaboration from the platform team.
Will Renzo’s team intervene?
So far, Renzo has not issued any official response regarding the incident. The affected user also shared with The Block that the error occurred while attempting to use a bot to make the transaction, resulting in the copy and paste error.
Banteg, Yearn’s development lead, commented that he “literally had a nightmare about a similar bug a few days ago,” highlighting the vulnerability that even experienced developers can face.
This incident highlights the inherent risk of handling large sums of money on staking platforms and smart contracts, especially when simple human error can lead to irreparable losses.
As the crypto community evaluates possible solutions, the case opens a debate about the importance of security measures and the possibilities of intervention in cases of transaction errors.
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