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USDC Holder Forks Over $2 Million For $0.05 USDT In Desperate Move To Evade Crypto Crash

Press Releases Crypto News Bitcoinist USDC Holder Forks Over $2 Million For $0.05 USDT In Desperate Move To Evade Crypto Crash

Every crypto investor’s nightmare starts when a sudden change in the industry leads to panic and massive selloffs. The effect of these two occurrences usually leads to uncontrollable price dips and deep losses for investors.

An example of such an event is the news that Circle couldn’t withdraw its $3.3 billion from Silicon Valley Bank. Notably, the bank was shut down by the California Department of Financial Protection and Innovation.

As the news broke, massive selloffs followed, causing an unlucky investor to lose deeply in a failed transaction.

Deep Loss For Crypto Investors

The issue started when crypto firm Circle announced it hadn’t received a wire transfer of $3.3 billion from Silicon Valley Bank. As soon as the announcement went out, many USDC investors panicked and started withdrawing. As a result, the USDC stablecoin depegged from the US dollar.

While some investors were fast enough to exchange their USDC for USDT, an investor wasn’t so lucky. In a Twitter post shared by BowTiedPickle, the investor made a $2 million payment but received $0.05 USDT.

USDC market crashes by over 13% on the chart l Source: Tradingview.com

After digging into the matter, BowTiedPickle discovered that the investor used KyberSwap aggregation router to dump “a large clip of 3CRV (DAI/USDC/USDT) LP token into USDT”. The user stored the crypto stablecoin in a liquidity pool which he could have sold for USDT for a 6% slippage. But as BowTiedPickle disclosed above, he chose a shady method.

Due to the rush, the investor forgot to set a slippage which would have allowed him to set the price for his transaction to go through. This resulted from human error, causing a permanent loss of funds.