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


16 Sep 2023 11:28 AM

On-chain data shows that F2Pool promptly returned the overpaid fee paid a few days ago to Paxos, rectifying the costly mistake....

  • F2Pool promptly returned an overpaid fee of $510,000 to Paxos, rectifying the mistake.
  • The transaction fee was almost 480,000 times higher than the average network fee.
  • Paxos acknowledged the error and identified it as a bug in a single transfer.
  • On-chain data shows that F2Pool sent the fee overpayment back to Paxos.
  • founder Chun Wang expressed regret over agreeing to the refund with Paxos.
  • The incident occurred on September 10, 2023, when Paxos attempted to transfer 0.074 BTC but ended up with a transaction fee of 19 BTC.
  • Jameson Lopp speculated that the mistake may have originated from a software issue in an exchange or payment processor's address handling system.
  • F2Pool allowed a three-day window for the user to claim the overpaid fees, and if unclaimed, the funds would be redistributed among miners.
  • Lopp commended the cooperative nature of the BTC network and considered the decision to return the funds as the humane choice.
  • Initial speculations pointed towards PayPal's involvement, but a Paxos spokesperson neither confirmed nor denied any connection.
  • Similar occurrences have happened in the past, such as an Ethereum user losing funds due to inputting values incorrectly.

The sentiment of the article is mostly positive, highlighting F2Pool's prompt action in rectifying the mistake and the cooperative nature of the BTC network.

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You May Ask

What was the amount of the overpaid fee that F2Pool returned to Paxos?How many times higher was the transaction fee compared to the average network fee?Who speculated that the mistake may have originated from a software issue?What did F2Pool do if the user did not claim the overpaid fees within a certain timeframe?Was there any confirmation of PayPal's involvement in the incident?

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