Bitcoin Miner F2Pool Returns to Paxos the Overpaid Transaction Fee Worth $510,000

Bitcoin miner F2Pool has efficiently reversed a current faulty bitcoin transaction that resulted in an excessively excessive transaction charge of $510,000, nearly 480,000 occasions the common community charge of $2.176. The accountable occasion, Paxos, acknowledged its error and recognized it as a bug in a single switch.

According to on-chain knowledge from Mempool on X, F2Pool has despatched the 19.82108632 BTC charge overpayment again to Paxos. This refund comes after intensive discussions inside the bitcoin group, with figures like Stake.fish founder Chun Wang expressing remorse over agreeing to the refund with Paxos.

F2Pool have despatched the 19.82108632 BTC charge overpayment again to Paxos https://t.co/IB32RNq5uO

— mempool (@mempool) September 15, 2023

Miner Returns Overpayment

On September 10, 2023, Paxos tried to switch a modest 0.074 BTC, valued at lower than $2,000. However, an error occurred, leading to a transaction charge of 19 BTC, equal to roughly $510,000. This anomaly marked the very best transaction charge ever recorded on the bitcoin community.

Jameson Lopp, co-founder of CasaHODL, analyzed the incident and speculated that the error could have originated from a software program situation inside an alternate or fee processor’s handle dealing with system. Lopp identified that the handle in query, which had processed over 60,000 transactions, probably skilled a miscalculation within the change output, resulting in the excessively excessive transaction charge.

The transaction that paid practically 20 BTC ($500,000) charge just a few hours in the past seems to be like an alternate or fee processor with buggy software program.

They’ve acquired 60,000+ txns and despatched 60,000+ txns from the identical handle (unhealthy follow) and certain calculated their change output incorrectly. pic.twitter.com/s44Yc8S2ia

— Jameson Lopp (@lopp) September 10, 2023

Chun Wang, co-founder of F2Pool, revealed that the consumer had a three-day window to assert the overpaid charges. In the occasion of non-claim, the miner would redistribute the funds amongst miners, a call geared toward fairly addressing potential unclaimed charges.

Lopp counseled the BTC community for its cooperative nature after the return. He expressed that bitcoin is an adversarial community, however on the flip facet, it’s additionally a cooperative one. Lopp emphasised that miners, being human, perceive that errors can occur. While protecting extreme transaction charges might yield short-term beneficial properties, he thought-about the choice to return the funds because the humane alternative.

Paypal’s Involvement Speculation

Initial speculations pointed in direction of PayPal’s involvement, because the digital pockets’s transaction conduct resembled a beforehand related defunct handle. However, a Paxos spokesperson neither confirmed nor denied any connection to PayPal.

There have been situations prior to now that noticed comparable occurrences. In 2019, an Ethereum consumer misplaced practically $400,000 in Ether after mistakenly inputting values within the improper fields. Fortunately, the Ethereum mining pool Sparkpool stepped in and assisted in recovering half of the misplaced funds.