Paxos Takes Responsibility for $500K Bitcoin Transaction Fee

Paxos clients and end users have not been affected and all customer funds are safe, confirms Paxos spokesperson.

Written By:
Gopal Solanky

Paxos Turns Out Behind 500K Bitcoin Fee Transaction

The address behind overpaying a mighty amount of $500k in fees for a single Bitcoin transaction has been identified as the stablecoin issuer Paxos. 

On September 10, the largest cryptocurrency network, Bitcoin, recorded a transaction with the most expensive fee paid. While several crypto analysts find the address to be related to PayPal, an official from the Paxos team confirmed that the address belongs to Paxos.

The Paxos spokesperson clarified that it was Paxos that overpaid the BTC network fee on September 10th, adding that the incident only affected Paxos corporate operations. 

“Paxos clients and end users have not been affected and all customer funds are safe,” the spokesperson said. “This was due to a bug on a single transfer and it has been fixed.” 

The official also added that Paxos is in contact with the miner to recover overpaid funds. Paxos has the chance to reclaim the fee, as the mining entity F2Pool said it would put a hold on these funds for three days in case the user wants to reverse their mistake. 

Before the confirmation from Paxos, the crypto community claimed that it was PayPal behind paying the whopping amount, as the address’s transaction records match the payment giant’s activity. 

The transaction became abuzz among the crypto community as it paid a fee of 19.82 BTC, or approximately $510k, to transfer a minimal amount of $2000.

Also read: Banana Gun’s Token Drops 99%, ChatGPT Finds Bug In Contract



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Gopal Solanki is a Research Analyst and Writer with over 5 years of experience in DeFi, blockchain, crypto, IT, and financial markets. With a Bachelor's in Computer Applications, he brings a strong technical foundation to his analysis and reporting. Gopal focuses on breaking down complex topics for both seasoned investors and curious readers. His work has been referenced by publications like Business Insider and Vulture.com, highlighting his contributions to industry stories around topics like Huwak Tuah Memecoin and the FTX collapse.