Ninjastic
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Re: Ouch, today someone made a transaction with over $500k fee.
by
nelson4lov
on 14/09/2023, 20:16:02 UTC
Quote from: Zenp on September 10, 2023, 09:02:23 PM

I doubt it's an act of carelessness, anyone with that kind of a balance would at least know how and where to input the appropriate fees. It could be a way to donate a large sum to the bitcoin miners.

Here's a tx from 2016 that paid a 291.24 btc fee: https://www.blockchain.com/explorer/transactions/btc/cc455ae816e6cdafdb58d54e35d4f46d860047458eacf1c7405dc634631c570d this fee was worth 130k USD at that time as the BTC price was close to $441. Looking back now, this fee is worth 7.5m USD.

It might be a honest mistake maybe the user in question was in a hurry and didn't confirm all inputs to the transactions. For all we know, both cases might have been a mistake because I doubt the possibility of someone paying that much when the value being sent out is around 3/100 of the gas fee?  It can happen to anybody this is why it's a recommended practice to strictly verify all inputs before a transactions is sent out and broadcasted to a network.

Edit: Paxos have confirmed that they did the transaction and that it was a mistake: https://finance.yahoo.com/news/crypto-miners-debate-500k-bitcoin-063851495.html

Although they didn't disclose how it happened, my best guess  is that they made the transaction programmatically rather than a manual input.