Massive Transaction Fee Paid on Bitcoin Transaction
You might be surprised to learn that a recent Bitcoin transaction involved an astronomical transaction fee. The transaction, which took place on September 10 at 5:10 PM UTC, was for a payment of only $200 worth of BTC. However, the transaction fee amounted to approximately $500,000, setting a new record for Bitcoin transaction fees.
Paxos Revealed as the Sender
The sender of this massive fee has been identified as Paxos, a US-regulated company that deals with stablecoins and provides various crypto-related services. Despite being considered an experienced Bitcoin user due to their history of over 120,000 transactions, Paxos made this costly blunder.
Paxos Confirms the Mistake
In a statement given to crypto news outlet The Block, a spokesperson from Paxos confirmed their role in the fee blunder. They acknowledged that Paxos overpaid the BTC network fee due to a bug in a single transfer. The company is now in contact with the miner who received the fee in an attempt to recoup the funds.
F2Pool Co-Founder Regrets Promise to Refund
Chun Wang, co-founder of F2Pool, the mining pool that mined the block containing the transaction, initially promised to hold the fee for three days in case anyone would claim it. However, he later expressed annoyance and regret over agreeing to refund the 20 BTC. There was a disagreement between Wang and Paxos regarding the timezone used when counting the days for the refund.
Bitcoin Community Offers Suggestions
Members of the Bitcoin community have offered different suggestions on how to resolve the matter. Some believe that F2Pool should refund the 20 BTC, while others suggest distributing it among the miners in the pool as a lesson for Paxos. The situation remains unresolved, with no updates from Wang regarding the massive transaction fee.
Hot Take: A Costly Mistake in Bitcoin Transaction Fees
The recent case of Paxos overpaying a staggering transaction fee on a Bitcoin payment highlights the importance of double-checking before making any transactions. This incident serves as a reminder that even experienced users can make costly mistakes. It also raises questions about the responsibility of mining pools and the role they play in resolving such errors. As the Bitcoin community awaits a resolution to this issue, it serves as a cautionary tale for all crypto users to exercise caution and diligence when dealing with digital transactions.
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