According to details of the transaction, Paxos tried initiating a transaction of 0.074 BTC, valued at less than $2,000 as of September 10, 2023.
However, the transaction fee surged to an astonishing 19 BTC, equivalent to about $510,000. This marked the highest transaction fee ever recorded on the Bitcoin network.
After making the payment, the news went viral and the company issued a statement saying that the hike in few was due to a bug in a single transfer.
On the other end, the miner, F2Pool, who validated the transaction and received the payment, rectified the error and refunded Paxos.
Paxos and F2POOL
Paxos is a financial technology company that operates in the blockchain and cryptocurrency space.
It provides various services, including cryptocurrency trading, stablecoin issuance (like PAX and BUSD), and blockchain infrastructure.
Paxos is known for its commitment to regulatory compliance and has gained recognition for its role in the development of stablecoins and blockchain-based financial solutions.
F2Pool is one of the world’s largest and well-known cryptocurrency mining pools. It provides a platform for cryptocurrency miners to collectively contribute their computing power to solve complex mathematical puzzles and validate transactions on various blockchain networks, such as Bitcoin and Ethereum.
Miners in the pool receive rewards based on their contributed computational power.
F2Pool is recognized for its reliability and has a significant share of the global mining network. It allows individual miners to participate in cryptocurrency mining without needing to operate their mining hardware.
The pool’s name, “F2Pool,” stands for “For the Second Pool,” as it was one of the early alternatives to the first Bitcoin mining pool, Slush Pool.
When the news about the transaction broke out, it was rumored that the affected organization was PayPal due to the digital wallet’s transaction behaviors, which resembled those of a defunct address previously associated with PayPal.
On Sept. 13, after Paxos announced that it was its server that made the transfer, the F2POOL gave an assurance that the funds were safe.
However, F2Pool’s co-founder, Chun Wang, revealed that the user had a three-day window to claim the overpaid fees or it would be distributed among other miners.