Crypto Community Divided: Unclear If the $510k Paxos Bitcoin Fee will be Refunded to Paxos or Distributed to Miners

Crypto News – The organization in charge of the 20 BTC transaction fee has been identified as cryptocurrency services company Paxos.

Crypto Community Divided: Unclear If the $510k Paxos Bitcoin Fee will be Refunded to Paxos or Distributed to Miners

On September 10, an unnamed entity paid a colossal charge of 19.89 BTC, which was then equivalent to over $500,000, to move only 0.008 BTC. The significant fee has generated debate within the cryptocurrency community. Initial speculation connected the transaction to PayPal, a major player in online payments. Furthermore, Paxos has been blamed for the astronomical cost.

Paxos overpaid the Bitcoin network fee on September 10, 2023.

A Paxos spokesperson

The Transaction Was a Fat Finger Error

The error has been referred to as a “fat finger” mistake, which is a mistake made by a person who is using a computer to enter data and presses the incorrect key. According to Paxos, the significant cost resulted from a single transfer problem that has since been addressed. In order to recover the money, the company further stated that it was in contact with the miner.

The company handling the Bitcoin transaction is F2Pool. Co-founder of mining pool F2Pool Chun Wang expressed sorrow for accepting the refund on September 14. The uncertainty over the time zone was also mentioned in his remarks.

I was annoyed and regretted agreeing to refund that 20 BTC. Especially when I saw the person claiming it kept saying EST instead of EDT/UTC. Last time a Zcash guy did that, I blocked his entire company.

Wang

Wang Starts a Survey on What to Do with His BTC Holdings

Stake.fish, a mining firm, took up the Paxos transaction and used its processing power to stake and mine many networks. The founder of Stake.fish, Chun Wang, stated in an X post earlier this week that the person or people responsible for the transaction have three days to claim the transaction and probably receive a refund.

Most likely, Paxos contacted Stake.fish to request the costs. However, pointing to time zone variations, Stake.fish’s Wang said the claim was filed after the initial deadline in a post on X on Thursday.

Wang also included a poll asking the cryptocurrency community what he ought to do with the Bitcoin. Approximately 35.5% of the 3,331 respondents felt it should be given to the miners as of the time of writing this article. About 28% of respondents thought Paxos should receive a refund. 50/50 sounds realistic, according to “chjango.cosmos,” a developer of Cosmos.

Chun’s predicament was made worse by the conflicting perspectives expressed by the crypto community on X platform, each of which was well-founded. Most people concur that the 20 BTC incentive should be shared among the Bitcoin mining community and that Chun is under no duty to return it.