In the world of cryptocurrency, transactions can occur quickly and seamlessly—but even a small mistake can have dire consequences. About a month ago, my friend learned this the hard way when he lost 50,000 USDT due to a simple oversight during the withdrawal process. This experience serves as an important lesson for everyone in the cryptocurrency space.

What happened?

My friend was trying to transfer 50,000 USDT from his Binance spot wallet to his business partner's Bybit wallet. His business partner provided him with a wallet address, specifying that the transfer must be made through the BEP20 network (Binance Smart Chain).

However, during the withdrawal process, my friend mistakenly selected the opBNB network instead of BEP20. The transaction was initiated and successfully processed on the Binance side, but the money never arrived at his business partner's Bybit wallet. Until now, the USDT has not been accounted for.

Why did this happen?

The error occurred due to a mismatch between networks. In cryptocurrency transactions, it is crucial to use the same network on both the sender's and recipient's wallets. If the network chosen for withdrawal does not match the network supported by the receiving wallet, the transaction may fail—or worse, the money could be lost forever.

In this case:

  • Binance wallet: The transaction was initiated on the opBNB network.

  • Bybit wallet: The wallet address is only compatible with the BEP20 network.

Bybit does not support the opBNB network, therefore the transaction cannot be processed, and essentially, the funds are stuck or unrecoverable.

Important lesson learned

  1. Always verify network compatibility
    Before initiating any transaction, double-check that the selected network matches the supported network of the recipient's wallet. Cryptocurrency wallets and exchanges often support multiple networks (e.g., BEP20, ERC20, TRC20), and selecting the wrong network can lead to irretrievable losses.

  2. Carefully review details
    During the withdrawal process, ensure that the wallet address and network details are accurate. Rushing these steps increases the likelihood of errors.

  3. Test with a smaller amount
    When transferring a large amount of cryptocurrency, consider sending a small test amount first. This way, you can confirm that the details are correct before risking the entire amount.

  4. Seek immediate assistance
    If an error occurs, contact the customer support of both the sending and receiving platforms as soon as possible. Although the chances of recovery are very low in such cases, some platforms may offer support.

Conclusion

This unfortunate incident highlights the importance of paying attention to detail in cryptocurrency transactions. Unlike traditional banking systems, cryptocurrency transactions are largely irreversible. A simple mistake, such as selecting the wrong network, can lead to catastrophic financial loss.

For anyone involved in cryptocurrency transactions, the takeaway is clear:

  • Always verify the wallet address and the corresponding network before proceeding.

  • Just a little caution can help you avoid the risk of losing thousands, even millions of dollars.

Consider this a reminder to always be vigilant and methodical, especially when trading large sums in the cryptocurrency world.