F2Pool returns 19 BTC to Paxos after overpayment of over $500k

A caller erroneous Bitcoin transaction that led to an inflated transaction interest of $510,000, astir 480,000 times the mean web interest of $2.176, traced backmost to Paxos, has been returned.

The institution acknowledged its mistake, attributing the inflated interest to a bug successful a azygous transportation that has present been rectified by F2Pool, the miner who received the overpayment.

According to on-chain information shared by Mempool connected X,

“F2Pool person sent the 19.82108632 BTC interest overpayment backmost to Paxos.”

Paxos attempted to transportation a specified 0.074 BTC, valued astatine little than $2,000, connected September 10, 2023. However, the resulting transaction interest was an astounding 19 BTC, equivalent to astir $510,000. The discrepancy resulted successful the highest transaction interest ever recorded connected the Bitcoin network.

Jameson Lopp, the co-founder of CasaHODL, analyzed the incidental and speculated that the mistake mightiness person originated from an speech oregon outgo processor code bundle issue. Lopp noted that the code successful question, which has handled much than 60,000 transactions, apt miscalculated the alteration output, starring to the inflated transaction fee.

The co-founder of F2Pool, Chun Wang, stated that the idiosyncratic could assertion the overpaid fees wrong a three-day window. If unclaimed, the funds would beryllium redistributed among miners— a determination aiming to code imaginable unclaimed fees equitably.

Paxos took responsibility for the error, confirming that the incidental lone affected the company’s firm operations and reassured customers funds were safe. The institution is presently moving connected recovering the interest done a Bitcoin miner.

Early speculation suggested PayPal’s engagement owed to the integer wallet’s transaction behaviors, which resembled those of a defunct code antecedently associated with PayPal. However, a Paxos spokesperson declined to corroborate oregon contradict immoderate narration to PayPal.

The station F2Pool returns 19 BTC to Paxos aft overpayment of implicit $500k appeared archetypal connected CryptoSlate.