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The Bitcoin (BTC) miner who received the 19.8 BTC in fees has returned the funds to the blockchain infrastructure company Paxos, following its assertion that the firm mistakenly paid over $500,000 in BTC transfer fees.
F2Pool has returned the 19.82108632 BTC fee overpayment to Paxos https://t.co/IB32RNq5uO
— mempool (@mempool) September 15, 2023
On September 10, the cryptocurrency community was bewildered upon observing a BTC transaction that incurred approximately $500,000 in fees to transfer around $2,000, while the typical network fee was about $2. Various theories emerged, with some speculating that the transaction resulted from copy-pasting data and inadvertently placing an output into the fee field without verification.
On September 13, Paxos revealed that it was their server that executed the transfer. Following this announcement, the company reassured its users that their assets were secure and that the funds were owned by Paxos. The firm also clarified that PayPal was not implicated in the error and acknowledged that the mistake was theirs.
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Nearly a day after Paxos’ statement, the Bitcoin miner who received the funds took to X (formerly Twitter) to voice frustrations after agreeing to refund the amount to Paxos. The miner inquired of their X followers what they would do in their position, and the majority suggested simply redistributing the funds to other Bitcoin miners.
However, it seems this advice was not acted upon. Blockchain data provided by Bitcoin explorer Mempool verified that the funds were indeed returned on September 15.
Related: How to strike a balance between blockchain transparency and privacy: Nansen CEO
Significant sums in transaction fee errors have been lost previously. In 2019, an Ethereum user lost nearly $400,000 in Ether (ETH) due to mistakenly pasting values in incorrect fields. Fortunately, the Ethereum mining pool Sparkpool assisted the user in recovering half of the lost funds.
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