Bitcoin transaction costs of $500,000: This crypto company’s fiasco

Earlier this week, the remarkable Bitcoin news broke that no less than $500,000 was paid in transaction fees to complete a transaction on the network. It is now known who is behind this gigantic mistake. Furthermore, it is far from certain whether the Bitcoin batch will be returned or not.

The crypto company pays 20 BTC in fees

First, let’s take a look back at the gigantic flaw discovered in the Bitcoin blockchain. For executing a transaction of just 0.07 BTC (approximately $1,800), a total fee of about 20 BTC was paid, which is about half a million dollars at current BTC rates.

F2Pool, one of the largest mining pools in the world, walked away with the loot, receiving a total of 20,013 BTC in fees for transaction block 807,058. In addition, of course, there are those Block reward of 6.25 BTC.

Rumors began circulating yesterday that the payment processor PayPal was behind the big mistake. On-chain analysts broke the news en masse on X, formerly known as Twitter, in front of a PayPal spokesperson specified that blockchain technology company Paxos was responsible for the transaction.

Paxos is the company behind PayPal’s stablecoin PayPal USD (PYUSD). It was also previously the issuer of the stablecoin Binance USD (BUSD) until it came under US scrutiny earlier this year Securities and Exchange Commission (SEK). In addition to PYUSD, Paxos is also responsible for issuing Pax Dollar (USDP) and manages its own crypto exchange.

The statement from the Paxos spokesperson is as follows:

“Paxos overpaid BTC network fees on September 10, 2023.” This only affected Paxos’ business activities. Paxos customers and end users are not affected and all customer funds are safe. This was due to a single transfer error and has been resolved. Paxos is in contact with the miner to recover the funds.”

Bitcoin miners in doubt

When the bizarre bug was discovered earlier this week, F2Pool founder Chun Wang announced on X that the 20 BTC would be put on hold. Additionally, the person responsible was given 3 days to come forward so that the funds could be returned.

A new message from Wang on In addition, it writes that Paxos blames the time zone differences. He says he regrets agreeing to return the Bitcoin stack.

From an attached Opinion poll shows that 35.8 percent of the total 2,347 votes prefer to distribute the funds to the BTC miners.

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