Bitcoin Bug Results in $500K Fee for $2K Transaction, Paxos Seeks Refund from Miners After Costly Mistake

Paxos paid an unusually high $500K fee for a $2K Bitcoin transaction due to a bug, and is seeking a refund from miners.
Mining company Stake.fish picked up the transaction and initially agreed to refund Paxos within 3 days.
After missing the deadline, Paxos asked for the refund again, but Stake.fish founder felt annoyed about refunding the full amount.
An online poll showed mixed opinions on whether the fee should be fully refunded, partially refunded, or kept by the miners.
Some felt Paxos should bear responsibility for the mistake, though others argued miners should return some funds.

coindesk.com

Relevant topic timeline:

9/13/2023

Paxos Confirms $510K BTC Fee was Bug, Says Miner Talks Ongoing to Recoup Overpayment

Crypto infrastructure provider Paxos has admitted to overpaying a $510,000 fee on a Bitcoin transaction due to a bug, but assured that it only affected their corporate operations and not their clients or customer funds.

9/14/2023

Crypto Miner Debates Keeping Accidental $500K Bitcoin Windfall

Bitcoin miner Chun, who received 20 BTC in error from Paxos, is reconsidering returning the funds due to annoyance with the person claiming it and has sought advice from the crypto community.

9/15/2023

Bitcoin Mining Pool Refunds $520,000 Transaction Fee for $2,000 Transfer After Community Discussion

Bitcoin mining pool F2Pool has returned 19.8 bitcoin (BTC) to Paxos after a $520,000 fee was paid on a $2,000 transaction due to a "bug," with the refund being praised as a cooperative and humane decision by the bitcoin community.

9/16/2023

Paxos Paid $500K in Fees to Move $2K in Bitcoin; Gemini Earn Users May Recover Funds

Paxos returns $500,000 bitcoin fee, FTX digital assets approved for sale, and Gemini proposes a recovery plan for Genesis Global creditors.

Topics

Posted 9/14/2023, 6:38:00 AM