On Sept. 15, the funds were verified to have been returned by Mempool, a Bitcoin explorer that analyzes blockchain data.
A Bitcoin miner promptly returned 19.8 BTC fees to Paxos, a blockchain infrastructure firm. This action followed the company’s claim of mistakenly overpaying more than $500,000 in transfer fees.
The cryptocurrency community was left bewildered on Sept. 10, when a Bitcoin transaction incurred staggering fees of approximately $500,000 to transfer a mere $2,000. Additionally, this anomaly puzzled many as the usual network fee for such transactions is around $2.
Moreover, Various theories and speculations emerged, some suggesting that an inadvertent data copying error might have occurred. It is possible that output was mistakenly pasted into the fee field without thorough verification.
On Sept. 13, Paxos made a revelation, stating that its server was responsible for the transfer. This acknowledgment prompted the company to assure its users that their funds remained secure and duly owned by Paxos. Additionally, Paxos clarified that PayPal bore no involvement in the error and accepted full responsibility for the mistake.
Mempool Confirms: Bitcoin Miner Honors Promise To Paxos
Almost a day after Paxos made their statements, the recipient of the funds, a Bitcoin miner, expressed their frustration on X (formerly known as Twitter). This came after they had agreed to reimburse Paxos for the amount.
Moreover, seeking guidance from their X followers, the miner conducted a poll to determine the preferred course of action. The majority voted in favor of redistributing the funds among other Bitcoin miners.
However, it appears that this advice was disregarded. As revealed by Bitcoin explorer Mempool, blockchain data supports that the funds were indeed returned on Sept. 15.
Countless dollars have been lost in transaction fees due to past errors. An incident in 2019 illustrates this well: an Ethereum user unintentionally entered incorrect values, resulting in the loss of nearly $400,000 worth of Ether. However, fortunately, the Ethereum mining pool Sparkpool stepped in and assisted, successfully recovering half of the lost funds for the user.
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