- A Bitcoin user accidentally paid nearly one BTC, about US$105,000 (AU$160,650), in fees to send a US$10 (AU$15.30) transaction to a Kraken wallet.
- Blockchain analysts identified the misconfigured transaction, which was processed by MARA Pool; experts attribute it to a manual wallet error.
- Past incidents show that miner refunds are rare, highlighting the financial risks of manually setting transaction fees in crypto transfers.
On 10 November, a Bitcoin user mistakenly paid almost one BTC in fees, valued at about US$105,000 (AU$160,650), for a US$10 (AU$15.30) transaction. Blockchain records revealed that 0.00010036 BTC was sent to a Kraken exchange address, while 0.99 BTC was incorrectly set as the transaction fee.
The error was identified by on-chain analysts monitoring Mempool.space and Whale Alert, with data confirming that MARA Pool mined the block and received the fee. Experts say the overpayment most likely stemmed from a manual configuration mistake. Many wallets allow users to set their own fees, and incorrectly entered values can send excess funds directly to miners.
Related: US Treasury Clears Path for Staking Yields on Wall Street Crypto Funds
User Error Still Crypto’s Biggest Risk
Luxor Mining Pool’s Nick Hansen described it as “some non-standard way of crafting a transaction”. Scott Norris from Omnes suggested it might simply be carelessness, noting that “it’s not terribly hard” to customise transaction fees.
Typically, Bitcoin transaction fees remain low, especially after mining pools reduced them in July to boost network activity. The average cost to confirm a BTC transaction currently sits below US$1 (AU$1.53), with most users paying only cents for small transfers.
While miners occasionally return mistaken payments, this depends on their discretion and requires the sender to prove ownership of the wallet. Refunds are therefore uncommon, making such user errors particularly costly.
Similar missteps have occurred in the past: in 2023, one trader lost 83.64 BTC to an incorrectly configured fee, while another user on Ethereum mistakenly sent US$24 million (AU$36.72 million) before the miner voluntarily refunded it.
The case highlights the risks of manual fee entry and serves as a reminder that precision is crucial when handling cryptocurrency transactions.
Related: Bitcoin Above $105k, Bull Market Restart or Relief Rally?
Credit: Source link
