PayPal, the global online payments giant, recently made headlines by overpaying an astonishing $510,750 as a Bitcoin transaction fee.
Initially dismissed as a possible "fat-fingered" error, this incident was traced back to an issue within PayPal's processing system, as revealed in a report by Mempool's Mononautical.
Notably, this stands as the largest fee ever paid for a Bitcoin transaction in terms of dollar value.
The investigation into this sizable overpayment has uncovered some intriguing details.
The fee was sent from a hot wallet using the address "bc1qr3...zpw3," which commenced operations in June of this year.
On-chain activity associated with this address reflects automated processing of fiat-denominated withdrawals, resembling the behaviour of an inactive wallet labeled as PayPal on oxt.me, specifically "bc1qhs...kx4n."
Bitcoin transaction fees are typically influenced by market demand and network congestion, making a fee exceeding $500,000 for such a modest transaction highly unusual.
The transition from the old wallet to the new "bc1qr3...zpw3" wallet is notably visible on the blockchain through an intermediary address, "bc1qlm...yvaf," adding substantial support to the theory of a software bug being the cause of this issue.
In order to validate this discovery, a thorough examination of known PayPal withdrawals was conducted on the blockchain, ultimately leading to the consensus that the problem most likely originated within PayPal's management system.
Mononautical stated, "All evidence now points to a software bug like this as the cause of the error," while also expressing empathy for the developer responsible for the code.
This type of mistake can happen easily but should ideally be identified during the code review process.
Additionally, the entire system appeared to be running "completely unmonitored" as PayPal failed to detect or halt these erroneous withdrawals for nearly 24 hours.
PayPal’s spokesperson expressed that its infrastructure partner Paxos was responsible:
"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. This was due to a bug on a single transfer and it has been fixed. Paxos is in contact with the miner to recoup the funds."
In a move to combat telephone fraud, a law enforcement agency recently executed an operation that led to the apprehension of two individuals, aged 20 and 33. The arrests took place in a public facility, and the suspects are currently under investigation for their involvement in a series of fraudulent activities.
JoyFTX clientele finds itself confronted by a deceptive priority withdrawal scam. These misleading emails purportedly originate from FTX Trading, West Realm Shires Services, and FTX EU.
CatherineA group of hackers exploited the Twitter account of a crypto exchange, Gate io, to promote fraudulent activities. In an ...
BitcoinistCybercriminals drew thousands to a fake stream on YouTube inducing many to click on fake cryptocurrency advertisements.
BeincryptoRisk assets surge higher after U.S. inflation data, but belief in a sustained uptrend emerging is hardly anywhere to be seen.
CointelegraphA lack of immediate retaliation from China emboldens U.S. stocks as new research concludes that the market is becoming increasingly "risk-on."
CointelegraphThe United States GDP readout for Q2 meets the definition of a recession, despite comments from both the Fed and lawmakers.
CointelegraphSome of the world's biggest banks are increasing their exposure to the digital asset market despite the recent market volatility. Is this a sign of things to come?
CointelegraphBitfinex heavyweights are not the only ones who see current Bitcoin price levels as a buying opportunity.
Cointelegraph
