Payment platform Paxos has confirmed it was responsible for a mistaken Bitcoin transaction in which an account overpaid $500,000 in fees to move just $2,000 worth of Bitcoin.
Speculation had initially arisen that PayPal was responsible for the transaction, but Paxos clarified that the error was its own. The mistake was due to a bug on a single transfer and has since been fixed. Paxos assured its clients and users that their funds were not affected and are secure.
The company is in contact with the miner to recover the lost funds. The transaction was discovered shortly after it occurred on September 10, with fees of approximately 20 BTC paid to send just 0.07 BTC.
Blockchain data showed that the sending account had made over 60,000 transactions from the same address, leading to suspicions it belonged to an exchange or payment processor with buggy software. Paxos’ statement confirms that the mistake was solely their responsibility.
Read Now: CoinEx hit by Cyber Attack resulted in $27 Million stolen, withdrawals suspended