Paxos claims responsibility for $500K transaction fee error
Sep. 13, 2023
By Mike Dalton
Earlier reports suggested that PayPal may have owned the wallet associated with the overpayment, but a spokesperson confirmed Paxos to be behind the transaction.
Paxos has claimed to be responsible for an oversized Bitcoin (BTC) transaction fee in a statement to CryptoSlate on Sept. 13.
The transaction in question took place on Sept. 10. The company attempted to send 0.07 BTC (about $2,000) but included a fee of 20 BTC (about $500,000).
A Paxos spokesperson said:
“Paxos overpaid the BTC network fee on Sept. 10, 2023. This only impacted Paxos corporate operations. Paxos clients and end users have not been affected and all customer funds are safe.”
The representative added that the transaction resulted from a “bug on a single transfer [that] has been fixed” but did not provide further details. Most speculation suggests that a bug exists in a Bitcoin wallet rather than on the Bitcoin blockchain itself.
The Paxos spokesperson added that the firm is trying to recover the fee through a Bitcoin miner. A member of the mining pool responsible for processing the transaction said on Sept. 10 that they would pause the transaction and wait for the sender to claim the fee; otherwise, they intend to redistribute the fee to other Bitcoin miners.
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