Wipe out all the fungible ESDTs held by a frozen Account
The manager of an ESDT token may wipe out all the tokens held by a frozen Account. This operation is similar to burning the tokens, but the Account must have been frozen beforehand, and it must be done by the token manager. Wiping the tokens of an Account is an operation designed to help token managers to comply with regulations.
In the management of eStandard Digital Token (ESDT) assets, the capability to wipe out all tokens from a frozen account is a critical function reserved for token managers. This operation, akin to burning tokens, necessitates that the account be previously frozen, underscoring a controlled approach to token removal. Wiping tokens effectively removes these assets from circulation permanently, serving as a compliance measure that helps manage the digital currency's supply and integrity under stringent regulatory frameworks.
The necessity for such an operation arises in various circumstances, such as addressing fraudulent activities or complying with legal orders, making it an essential tool for maintaining the ecosystem's security and trust. By allowing token managers to execute wipes, the ESDT system provides a mechanism for enforcing compliance and managing risk, ensuring that all modifications to the token supply are transparent and accountable. This operation not only safeguards the blockchain network but also reinforces the confidence that investors and users place in the digital asset's management.