A recent remarkable event unraveled in the crypto-space involving a US-based crypto service provider named Paxos. Its transaction on September 10, recorded at 5.10 PM UTC, was particularly eye-catching. The reasons were rather dubious – Paxos initiated a payment of a meager $200 value in BTC but tagged an astounding transaction fee around $500,000. The outrageous figure made a new record in Bitcoin transaction fees.
The originator of the payment, at first glance, was considered to be a seasoned Bitcoin user with an impressive track record – a history of over 120,000 transactions. However, it was later unmasked that the sender was Paxos, an established regulated firm in the US that moots numerous stablecoins and a range of crypto-related services.
On acknowledging their sizable blunder, Paxos put forth an interesting statement to a crypto news portal, ‘The Block.’ The firm admitted to their mistake of overpaying the BTC network fee that was cracked up due to a bug instigating a single transfer error. Despite the unfortunate happening, they were quick to reassure that the bug had been rectified. They added that a conversation about recouping the funds is underway with the miner involved in the transaction.
Chun Wang, co-founder of F2Pool, that mined the block harboring the transaction, has been in talks with Paxos. Interestingly, Wang initially pledged to hold the high fee for three days in anticipation of any claims. However, he later expressed regret and annoyance about his agreement to refund the 20 BTC. His disappointment stemmed from a dispute with Paxos about the timezone being used to count the days from his promise.
Keeping this pickle under the spotlight, Wang sought advice from his followers on X. The Bitcoin community exhibited divergent views on how to confront the issue. Some recommended a refund of 20 BTC, and others suggested distributing it amongst the pool’s miners as a penalty to teach Paxos a hasty yet lasting lesson.
To date, there is no resolution on the horizon about the colossal transaction fee. The crypto community eagerly waits for an update from Wang. This incidence brings attention to the unpredictability baked into the innovation of digital currency. It draws a thick line between assumptive trust and verifiable confidence. Despite the fanfare of seamless transactions and decentralization, such episodes infuse necessary skepticism – driving discussions for improved safety protocols.
Source: Cryptonews
