Miner returns over $500k in BTC transaction fee overpayment to Paxos

Making Money on Web 3.0

The Bitcoin (BTC) miner who received the 19.8 BTC in fees has returned the funds to blockchain infrastructure firm Paxos, after its claims that the company made the mistake of paying over $500,000 in BTC transfer fees.

On Sept. 10, the crypto community was puzzled after seeing a BTC transaction that paid around $500,000 in fees to move around $2,000, while the average network fee was around $2. Various speculations were raised, with some believing that the transaction was done by copy-pasting data and accidentally pasting an output into the fee box without double-checking.

On Sept. 13, Paxos announced that it was their server that made the transfer. Following its claim, the company assured its users that their funds were safe and that the funds belonged to Paxos. The company also clarified that PayPal was not involved in the mistake and admitted that the error was its own.

Almost a day after Paxos’ claims, the Bitcoin miner who received the funds went on X (formerly Twitter) to express frustrations after agreeing to refund the amount to Paxos. The miner asked their X followers how to make money in Web 3.0, and a majority voted to just distribute the money to other Bitcoin miners.

However, this advice doesn’t seem to have been taken into account. According to Bitcoin explorer Mempool’s blockchain data, the funds were returned on Sept. 15.

In the past, many people have lost thousands of dollars due to transaction fee mistakes. For instance, in 2019, an Ethereum user lost almost $400,000 in Ether (ETH) after mistakenly pasting values in the wrong fields. Fortunately, the Ethereum mining pool Sparkpool helped the user recover half of the funds lost.

Nowadays, many people are interested in how to get involved in Web 3.0, how to make money with Web 3.0, and how to invest in Web 3.0. Although the concept of Web 3.0 is still in its infancy, it is possible to make money from Web 3.0 by investing in the right projects.

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