New record — USD 2.6 million for a single Ethereum (ETH) transaction!
Transaction fees are a sensitive issue in the crypto world. Especially Bitcoin (BTC) is often criticized for this. However, Ethereum has also been under strong criticism for a few days now.
On June 10th, an unknown Ethereum user sent ether worth 130 US dollars, which normally corresponds to a harmless transaction. However, the user still had to pay 10,668 ETH transaction fees, which is equivalent to a sum of 2.6 million USD.
This incident quickly made the rounds; for many, it was unclear what was going on.
For some, it was a form of money laundering, as the sender could write off the fee as an error. Others believe that it is simply a mistake in the user’s wallet.
But this transaction was not enough. The same user spent another 10,688 ETH on another transaction, 16 hours after the first one. This time the 2.6 million USD was spent to transfer 87,000 USD.
The fact that it happened twice to the same user strongly suggests that it was a wallet error. Larry Cermak of The Block said
“This is from the same address with the same fee at the ETH (10,668.73185) This supports the theory of a bug and suggests it hasn’t been fixed yet.”
An associate professor of computer science at Cornell University, Emin Gün Sirer, said that two fields were swapped in an API call. It seems to him that the user was more likely to send the 10,688 ETH to a destination address, but this sum was swapped as a transaction fee, and the miners who processed this transaction were Ethermine, a leading mining pool that is one of the largest.
They noticed the suspicious transaction and called it a probable “accident”. Since then, Ethermine has set aside the transaction’s 10,668 ETH worth of fees and is requesting that the sender contact support so that the fees can be refunded.
A similar response was shown by the Mining Pool Sparkpool who processed the first transaction. Shelton Qiu, Key Account Manager has told The Block that they are waiting for the sender to contact them.
The unknown sender should be able to contact the companies and prove that he is the owner of the address. Only then is a refund possible.
Strangely enough, the address was only created on 6 June, which adds to the mystery of this situation. However, this address is not connected to any stock exchanges, hacks, or any companies.
I share more intimate thoughts in a monthly newsletter that you can check out here. Please let me know in a comment and join me on various social media platforms:
Twitter ● Instagram ● Facebook ● Snapchat ● LinkedIn
WHATEVER YOU DO, DO IT WITH LOVE AND PASSION!