Bitcoin

PayPal Reportedly Overpaid $510,750 In The Largest USD Bitcoin Transaction Fee Ever

1 Mins read

In a surprising turn of events, PayPal, the global online payments giant, reportedly overpaid a staggering $510,750 on a Bitcoin transaction fee. The incident, initially thought to be a “fat-fingered” mistake, has now been traced back to an issue within PayPal’s processing system, according to a report by Mempool’s Mononautical. This is the largest fee ever paid for a Bitcoin transaction in dollar terms.

Image Source

The investigation into the colossal overpayment, which drew widespread attention when it was first reported, has led to some unexpected discoveries. The overpaid fee was sent from a hot wallet using the address “bc1qr3…zpw3,” which commenced operations in June earlier this year. On-chain activity associated with this address indicates automated processing of fiat-denominated withdrawals, closely resembling the behavior of an inactive wallet labeled as PayPal on oxt.me, specifically “bc1qhs…kx4n.” The Bitcoin transaction fees are typically determined by market demand and network congestion. They can vary significantly, but a fee exceeding $500,000 for such a small transaction is considered highly unusual.

Image Source

The transition from the old wallet to the new “bc1qr3…zpw3” wallet can be distinctly observed on-chain through an intermediate address, “bc1qlm…yvaf,” adding further evidence to the software bug theory.

To confirm this finding, actual known PayPal withdrawals were traced on-chain, ultimately leading to the conclusion that the issue likely originated from within PayPal’s management system. “All evidence now points to a software bug like this as the cause of the error,” Mononautical said. “I really feel for the developer who wrote that code – it’s such an easy mistake to make, and it should have been caught in review.”

Furthermore, the entire system was running “completely unmonitored,” as PayPal failed to notice or halt the erroneous withdrawals for nearly 24 hours. This incidenct serves as a stark reminder of the need for meticulous attention to detail and vigilant oversight when conducting Bitcoin transactions, especially when handling large sums of money.


Source link

Related posts
Bitcoin

Is It Too Late To Buy MANEKI? Maneki Price Surges 103% In A Week And This DOGE Derivative Might Be The Next Crypto To Explode

2 Mins read
Join Our Telegram channel to stay up to date on breaking news coverage The Maneki price has surged 103% in the past…
Bitcoin

Bitcoin Whales Balance Returns To Pre-FTX Collapse Levels - Impact On BTC Price?

2 Mins read
Heading into the year 2024, Bitcoin spot ETFs (exchange-traded funds) and the halving event were arguably the biggest narratives in the crypto…
Bitcoin

Toncoin: $1 Billion Whale Activity Shakes Up Price

2 Mins read
Despite a recent surge in activity from large investors, often referred to as “whales,” the price of Toncoin (TON) appears headed for…

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *