A half-million-dollar mistake: User pays $500,000 fee for a $200 bitcoin transaction

TL;DR Breakdown

  • A Bitcoin user mistakenly paid a record-breaking 19.89 Bitcoin (around $500,000) in transaction fees to transfer just 0.074 Bitcoin (approximately $200), making it the most expensive Bitcoin transaction fee ever in U.S. dollar terms.
  • F2Pool, the mining pool that processed the transaction, has offered a three-day grace period for the sender to reclaim the exorbitant fee; otherwise, it will be distributed among F2Pool’s miners.

Description

In a jaw-dropping event that has left the cryptocurrency community astounded, an individual paid an exorbitant 19.89 Bitcoin (roughly $500,000) in transaction fees to transfer a paltry 0.074 Bitcoin (approximately $200). The transaction, executed on September 10, 2023, at 5:10 PM UTC, shattered previous records to become the most expensive Bitcoin transaction fee ever paid … Read more

In a jaw-dropping event that has left the cryptocurrency community astounded, an individual paid an exorbitant 19.89 Bitcoin (roughly $500,000) in transaction fees to transfer a paltry 0.074 Bitcoin (approximately $200). The transaction, executed on September 10, 2023, at 5:10 PM UTC, shattered previous records to become the most expensive Bitcoin transaction fee ever paid in U.S. dollar terms. Intriguingly, the wallet behind this financial faux pas was not a newcomer; it had been involved in over 120,000 transactions, according to cryptocurrency experts.

F2Pool’s response: A grace period for the erring user

The hefty transaction fee was routed to F2Pool, a prominent Bitcoin mining pool. Chun Wang, the co-founder and administrator of F2Pool, declared that the staggering 19.89 Bitcoin would be held in abeyance for three days. This grace period provides the sender an opportunity to reclaim the funds. Should the funds remain unclaimed, they would be apportioned among F2Pool’s Bitcoin miners.

The wallet responsible for this transaction was established in June and has continued to be active, as indicated by on-chain data. Industry experts, including Jameson Lopp, speculate that the transaction could be attributed to “buggy software” from an exchange or payment processor.

Historical data reveals that Bitcoin has witnessed high-value transaction fees in the past. In 2016, a user parted with $134,000 as a transaction fee. However, this recent event has eclipsed all previous records, both in terms of Bitcoin and U.S. dollars. 

The Bitcoin network allows for a flexible fee structure, enabling users to pay as much or as little as they wish. While low fees may lead to delayed transaction confirmations, exorbitant fees guarantee immediate processing. The average transaction fee on the Bitcoin network typically ranges between $1 and $2 but has spiked to $60 during periods of high network activity.

The incident has ignited a flurry of discussions among cryptocurrency enthusiasts and experts. Calls for more user-friendly interfaces and additional fail-safes to prevent such expensive errors have intensified. 

As cryptocurrencies increasingly penetrate mainstream financial markets, the stakes continue to rise. Even minor errors can result in substantial financial setbacks.

While the user has a narrow window to reclaim the lost Bitcoin, the incident serves as a stark reminder of the risks and responsibilities that come with handling digital assets. Whether or not the funds are reclaimed, this episode will undoubtedly go down in the annals of cryptocurrency history as one of the most expensive lessons ever learned.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:A half-million-dollar mistake: User pays $500,000 fee for a $200 bitcoin transaction

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年9月12日 07:03
Next 2023年9月12日 08:05

Related articles

  • ECB’s conundrum: To raise rates or not to raise rates?

    Description The corridors of the European Central Bank (ECB) have been echoing with one critical debate recently: should they hike the interest rates yet again? It’s a double-edged sword, and the pressure is palpable. A Fractured Consensus Last year, the consensus was evident. The ECB, aiming to stifle inflation, had incrementally hiked rates by 4.25 percentage … Read more The corridors of the European Central Bank (ECB) have been echoing with one critical debate recently: should they hike the interest rates yet again? It’s a double-edged sword, and the pressure is palpable. A Fractured Consensus Last year, the consensus was evident. The ECB, aiming to stifle inflation, had incrementally hiked rates by 4.25 percentage points since July 2022. But now, the very fabric of that consensus seems to be unraveling. With whispers of a looming eurozone recession becoming louder and the annual price growth now a mere shadow of its former 10.6% self, the unified direction of the bank’s trajectory seems to be on shaky grounds. Within the inner sanctum of the bank, the governors appear divided. While some are…

    Article 2023年9月13日
  • Superconductor Discovery Sparks Crypto Frenzy: The Rise of LK-99 Memecoins

    TL;DR Breakdown The discovery of LK-99, a material reported to exhibit superconductivity at temperatures up to 400K (127°C), has sparked a surge in the creation of LK-99-themed memecoins in the crypto market. While the scientific community awaits independent verification of the LK-99 results, the future of these memecoins remains uncertain. Description In the ever-evolving world of technology and finance, a new trend has emerged that has captured the scientific community’s and cryptocurrency markets’ attention. The discovery of a new superconducting material, LK-99, has sparked a flurry of activity in the crypto space, creating a cluster of LK-99-themed memecoins. This article delves into the details of this … Read more In the ever-evolving world of technology and finance, a new trend has emerged that has captured the scientific community’s and cryptocurrency markets’ attention. The discovery of a new superconducting material, LK-99, has sparked a flurry of activity in the crypto space, creating a cluster of LK-99-themed memecoins. This article delves into the details of this phenomenon, exploring the science behind LK-99, the rise of related memecoins, and the potential implications for…

    Article 2023年8月7日
  • Steadefi hackers successfully launder $185K in ETH through TornadoCash 

    TL;DR Breakdown Steadefi hackers sent $185K of stolen Ethereum to TornadoCash mixer after exploiting the DeFi platform’s weaknesses. The hack drained over $334K from Steadefi last week, with total losses topping $1.14 million. By laundering funds through TornadoCash, the attackers are trying to obfuscate the money trail and cash out undetected. Description Steadefi, the decentralized finance (DeFi) platform hit by a devastating exploit last week, has observed hackers laundering some of the stolen funds through privacy protocol TornadoCash. Blockchain security firm CertiK Alert revealed that an Ethereum account linked to the Steadefi hack deposited 100 ETH worth $185,000 into TornadoCash on August 9th. This transaction was flagged … Read more Steadefi, the decentralized finance (DeFi) platform hit by a devastating exploit last week, has observed hackers laundering some of the stolen funds through privacy protocol TornadoCash. Blockchain security firm CertiK Alert revealed that an Ethereum account linked to the Steadefi hack deposited 100 ETH worth $185,000 into TornadoCash on August 9th. This transaction was flagged as being connected to the attack that drained over $334,000 from Steadefi on August 7th….

    Article 2023年8月14日
  • Brazilian lawmakers consider adding crypto to asset protection bill

    TL;DR Breakdown Brazilian lawmakers are seeking to include cryptocurrency holdings within the scope of this protective legislation. The recognition of cryptocurrencies as a form of real money within the regulatory framework paves the way for extending asset protection to crypto holdings. Description As discussions continue among Brazilian lawmakers regarding a bill aimed at offering robust protection to a significant portion of debtors’ savings assets, a separate initiative is seeking to include cryptocurrency holdings within the scope of this protective legislation. Expanding asset protection bill to include cryptocurrency The proposed bill, numbered 4.420/2021 and authored by Deputy Carlos … Read more As discussions continue among Brazilian lawmakers regarding a bill aimed at offering robust protection to a significant portion of debtors’ savings assets, a separate initiative is seeking to include cryptocurrency holdings within the scope of this protective legislation. Expanding asset protection bill to include cryptocurrency The proposed bill, numbered 4.420/2021 and authored by Deputy Carlos Bezerra, is currently undergoing consideration by the Constitution, Justice, and Citizenship Committee of the lower chamber of the Brazilian Parliament. This bill seeks to amend…

    Article 2023年9月21日
  • Crypto gaming scams alert: Philippines police warn of millions at risk as fraudulent play-to-earn schemes surge

    TL;DR Breakdown Philippines’ National Police warns of play-to-earn (P2E) gaming scams, with custom-created apps stealing millions in crypto. The police bulletin highlights both legitimate platforms like Axie Infinity and risks such as market volatility and unsupported wallets. The warning calls attention to the need for regulation and education in P2E gaming, emphasizing the thin line between legitimate games and fraud. Description The National Police Anti-Cybercrime Group (PNP ACG) of the Philippines has warned residents about the risks associated with play-to-earn (P2E) games, revealing that these platforms can be used to steal crypto assets worth millions of dollars. The cybercrime unit’s latest bulletin highlighted the theft of unsuspecting victims’ crypto assets through custom-created gaming apps, luring victims … Read more The National Police Anti-Cybercrime Group (PNP ACG) of the Philippines has warned residents about the risks associated with play-to-earn (P2E) games, revealing that these platforms can be used to steal crypto assets worth millions of dollars. The cybercrime unit’s latest bulletin highlighted the theft of unsuspecting victims’ crypto assets through custom-created gaming apps, luring victims with promises of substantial financial rewards….

    Article 2023年8月20日
TOP