F2Pool Returns 19 BTC to Paxos After $500k Overpayment
A recent bitcoin transaction involving Paxos resulted in an abnormally high transaction cost of $510,000, which was nearly 250,000 times the typical network fee. The miner F2Pool, responsible for the transaction, has since sent back the additional transaction fees to Paxos. Paxos admitted its error and attributed the inflated cost to a glitch in a single transfer.
Jameson Lopp, co-founder of CasaHODL, analyzed the situation and suggested that faulty software from an exchange or payment processor address might be the root cause of the problem. Lopp identified the address involved in the transaction as one that has sent and received over 60,000 transactions, stating that the incorrect calculation of the change output likely led to the transaction fee issues.
Paxos acknowledged the error three days after the transaction occurred and confirmed that it was due to faulty code. The company reassured users that their money was secure. Furthermore, Paxos clarified that PayPal was not involved in the error and that they took full responsibility.
After agreeing to refund the money to Paxos, Chun Wang, co-founder of F2Pool, expressed regret about the decision on Twitter. In a poll conducted among his followers, the majority voted to distribute the money among other bitcoin miners. According to mempool.space, the 19.8 bitcoin in question has already been returned to the sender address.
Overall, this incident highlights the importance of robust software and rigorous testing in the cryptocurrency industry. As bitcoin transactions continue to increase in volume and value, it is crucial for companies to ensure the reliability and accuracy of their systems to prevent costly errors. The swift response from F2Pool and their decision to refund the overpayment demonstrates a commitment to rectifying mistakes and maintaining trust within the bitcoin community..
#F2Pool #Refunds #Paxos #BTC #500k #Overpayment
A recent bitcoin transaction involving Paxos resulted in an abnormally high transaction cost of $510,000, which was nearly 250,000 times the typical network fee. The miner F2Pool, responsible for the transaction, has since sent back the additional transaction fees to Paxos. Paxos admitted its error and attributed the inflated cost to a glitch in a single transfer.
Jameson Lopp, co-founder of CasaHODL, analyzed the situation and suggested that faulty software from an exchange or payment processor address might be the root cause of the problem. Lopp identified the address involved in the transaction as one that has sent and received over 60,000 transactions, stating that the incorrect calculation of the change output likely led to the transaction fee issues.
Paxos acknowledged the error three days after the transaction occurred and confirmed that it was due to faulty code. The company reassured users that their money was secure. Furthermore, Paxos clarified that PayPal was not involved in the error and that they took full responsibility.
After agreeing to refund the money to Paxos, Chun Wang, co-founder of F2Pool, expressed regret about the decision on Twitter. In a poll conducted among his followers, the majority voted to distribute the money among other bitcoin miners. According to mempool.space, the 19.8 bitcoin in question has already been returned to the sender address.
Overall, this incident highlights the importance of robust software and rigorous testing in the cryptocurrency industry. As bitcoin transactions continue to increase in volume and value, it is crucial for companies to ensure the reliability and accuracy of their systems to prevent costly errors. The swift response from F2Pool and their decision to refund the overpayment demonstrates a commitment to rectifying mistakes and maintaining trust within the bitcoin community..
#F2Pool #Refunds #Paxos #BTC #500k #Overpayment