Paxos Made a Mistake That Cost 500,000 USDT

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Last Updated on September 14, 2023 by Bitfinsider

In what appeared to be a “fat finger” error, cryptocurrency services company Paxos established the record for the single largest payment for a Bitcoin transaction fee.

On September 10, an anonymous organisation paid a charge of 19.89 BTC (about $500,000) to move 0.008 BTC ($200). On Wednesday, Bitcoin Magazine traced the transaction to payments giant PayPal, but later blamed the error to its infrastructure partner Paxos.

“This was due to a bug on a single transfer, and it has been fixed,” the representative added. “Paxos is in contact with the miner in an attempt to recoup the funds.”

According to The Block, the wallet that made the payment is a Bitcoin power user, having sent and received more than 120,000 transactions. It has until today to try to recoup the transaction fee from the Bitcoin mining pool that executed the transaction, F2Pool.

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