Paxos Takes Responsibility for $500,000 Bitcoin Fee Overpayment, User Funds Remain Safe
Summary:
Paxos confirms it was responsible for overpaying $500,000 in fees for a Bitcoin transfer. User funds remain unaffected. Speculations about PayPal's involvement were debunked. Efforts are underway to recoup the lost funds. Mistaken transactions resulting in high fees highlight the need for caution in crypto transactions.
Paxos, a well-known issuer of stablecoins and operator of a crypto brokerage firm, has confirmed that the account that overpaid $500,000 in fees for a Bitcoin transfer on September 10 belonged to them. However, Paxos assures its users that their funds are safe and unaffected by the mistake. The speculation that PayPal was responsible for the transaction was debunked by a Paxos representative who clarified that the error was on their part. The mistaken transaction, which involved paying a significant fee for a small transfer, was discovered shortly after it occurred. Bitcoin mining pool F2Pool offered to return the funds if claimed within three days. Before Paxos made its statement, there were rumors on Twitter suggesting PayPal's involvement in the transaction, but these were proven to be unfounded. Paxos has reached out to the mining company involved in an attempt to retrieve the lost funds. This incident is not the first time an error has resulted in significant fees for crypto users or companies, highlighting the importance of double-checking transactions.
Published At
9/13/2023 7:06:02 PM
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