Three days ago, Whale Alert reported the payment of bitcoin transaction fee of 19.89 BTC. Which represented the equivalent of 509,563 US dollars to this date. However, the individual (or the crypto exchange) in question only wanted to transfer the modest sum of 0.074 BTC, or $2,000. The damage is done, and the name of the culprit already known: Paxos. Zoom !
In short
- PayPal made a huge blunder by entering 19.89 BTC as transaction fees on Bitcoin, amount of the sum transferred: 0.074 BTC
- Wang Chun, co-founder of the F2Pool mining pool, who received the $500,000 in bitcoin, gave the owner of his bitcoins 3 days to come forward.
Paxos, author of an erroneous $500,000 bitcoin transaction
Do you remember the big blunder made by Crypto.com last March? This could have caused the loss of around 10 million Australian dollars to the crypto exchange if local justice had not come forward in time.
6 months later, crypto media reported a similar incident.
“ PayPal accidentally paid $510,750 in Bitcoin transaction fees.
+479,000 overpaid!
We thank you for the donation… »
According to Cointelegraph, Paxos, the crypto company that helped PayPal in the development of the stablecoin PYUSD, recently made a statement regarding this topic. According to him, this incident has and will have no impact on end users or their funds.
“ Paxos overpaid BTC network fees on September 10, 2023. This only impacted the operations of the Paxos company. Paxos customers and end users have not been affected and all customer funds are safe. The problem was due to a bug on a single transfer and it was corrected. Paxos is in contact with the miner to recover the funds. The erroneous transaction was discovered on September 10, shortly after it took place. According to blockchain data, the sender paid a fee ofaround 20 BTC (worth over $515,000 at the time) to send just 0.07 BTC (worth $2,000 on that date). At the same time, Jameson Loop, co-founder of Casa Wallet, said the issuing account ‘looks like an exchange or payment processor with faulty software’ “.
Paxos also added that neither its employees nor those of PayPal intentionally made this error.
A look back at the origin of this loss of bitcoins
What really happened on September 10? It all started with this Tweet from Whale Alert.
“ A fee of 19 BTC (509,563 USD) was just paid for a single transaction! »
Came later a series of investigations carried out by crypto pseudo-detectives concerning the bitcoin transaction affair.
Jameson Loop, co-founder of Casa HODL and creator of bitcoin.page, summarized his investigations this way:
“ The transaction that paid almost 20 BTC ($500,000) in fees a few hours ago appears come from an exchange or payment processor with buggy software. They received over 60,000 transactions and sent over 60,000 transactions from the same address (bad practice) and probably miscalculated their exchange rate », he specified in a tweet.
At the same time, Mempool’s Mononautical conducted its own investigation and concluded that this was a “fat-fingered” error. Bitcoin Magazine, which relayed the report, clarified that The problem was with PayPal’s processing system.
Thus, his investigations made it possible to identify the address of the crypto wallet which carried out the erroneous bitcoin transaction: “bc1qr35hws365juz5rtlsjtvmulu97957kqvr3zpw3”. This in fact showed correspondences to another inactive address labeled “PayPal” by OXT. Its transaction history highlights a transfer of 18.5 BTC to “bc1qlm0xlahpysq2v9yh5rhcc430xjz3xknqqnyvaf” on June 19.
As mentioned above, Paxos had accidentally sent the bitcoins to a BTC F2POOL mining pool.
To see the latest news, Wang Chu would no longer want to repay the 20 BTC from Paxos. The crypto community seems to agree with him and is calling for the redistribution of funds to the bitcoin miners in his pool.
The 500,000 dollars paid by Paxos may surprise more than one person. Likewise the all-time high in bitcoin transaction fees of $62,788 in April 2021. But a year later, our company reported that a transaction should only cost $1,039. You should note that the average bitcoin transaction fee is usually between $1 and $2.
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