Not PayPal's Fault, But Paxos Fat Fingers Led $510,000 Bitcoin Transaction Fee Mishap Due To Internal Bug
Portfolio Pulse from Mehab Qureshi
Crypto infrastructure provider Paxos has admitted to overpaying a Bitcoin network fee by $510,000 due to a bug affecting a single transfer. The error was initially speculated to involve PayPal Holdings Inc, but Paxos clarified that PayPal was not responsible. Paxos is in discussions with the miner who received the excess fee to recover the funds. PayPal uses Paxos to manage its crypto custody services.
September 14, 2023 | 4:02 am
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NEUTRAL IMPACT
Paxos overpaid a Bitcoin network fee by $510,000 due to a bug affecting a single transfer. The company is in discussions with the miner who received the excess fee to recover the funds.
The news directly involves a Bitcoin transaction. However, it is unlikely to have a significant impact on Bitcoin's price as it is an isolated incident related to Paxos' operations, not a systemic issue with the Bitcoin network.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 100
NEUTRAL IMPACT
The incident with Paxos overpaying a network fee is not the first in the crypto space. In 2019, an Ethereum user lost over $300,000 by mistakenly inputting values in the wrong fields.
The news mentions an incident involving Ethereum as a comparison to the current situation with Paxos and Bitcoin. However, it does not directly impact Ethereum or its price.
CONFIDENCE 90
IMPORTANCE 30
RELEVANCE 30
NEUTRAL IMPACT
PayPal was initially speculated to be involved in Paxos' Bitcoin network fee error, but Paxos clarified that PayPal was not responsible. PayPal uses Paxos to manage its crypto custody services.
Although PayPal was initially speculated to be involved in the error, Paxos clarified that PayPal was not responsible. This news does not directly impact PayPal's operations or financials, but it does highlight the risks associated with the crypto custody services provided by Paxos, which PayPal uses.
CONFIDENCE 90
IMPORTANCE 50
RELEVANCE 50