Tether accidentally printed $5 billion of its fiat-pegged USDT because of human error.
The error happened when the Tether team was processing the transfer of tokens from Omni Layer to the Tron blockchain. A supposedly $50 million transfer became $5 billion after someone mistyped a decimal point.
Cryptocurrency exchange Poloniex then elucidated that the dilemma happened after it asked Tether’s help to facilitate a token swap.
“This occurred while Poloniex was conducting a USDT chain swap with the help of Tether. An incorrect amount of USDT was accidentally minted, and this has since been resolved to the intended value.”
Bitfinex and Tether CTO Paolo Ardoino clarified that his team quickly responded to address the problem by burning the mistaken tokens before they could disrupt the worldwide cryptocurrency market.
Just before 6 pm ET on July 14, Tether minted the $5 billion tokens. Four minutes after, they burned $500 million worth of USDT as they tried to solve the problem. They subsequently went ahead to burn another $4.5 billion, thus fixing the error.