Ethereum miner says it has frozen a $2.5 million fee paid alongside a $133 transaction

advertisement

Ethereum mining pool SparkPool says it has frozen $2.5 million in transaction fees associated with a mysterious transaction in which someone only sent $133 worth of ether (ETH).

Shelton Qiu, key account manager of SparkPool, told The Block that the pool is waiting for the sender to reach out in order to find a solution.

Some observers have drawn a connection between the high-fee transaction and Bithumb, a major South Korean exchange. Alex Svanevik, founder of D5, told The Block that “Both on the incoming and outgoing side, there's ETH flow from/to Bithumb. That doesn't mean it's them behind it (could just be a user of their platform - but in that case they would know who it is).” The Block has reached out to Bithumb and will update this story should we hear back.

The reasoning behind the transaction isn't clear, but that has not stopped observers from speculating. A private crypto investor and researcher told The Block that the transaction could be an intentional one, executed for tax evasion reasons. In that case, the sender could claim that the high fees paid were an accident, claim it as a loss, and then make a backdoor deal with a mining pool to get the money back.

It's also possible the transaction was an honest mistake in which the sender swapped “value” and “transaction fee” fields in an API call, as Cornell computer science professor Emin Gün Sirer explained on Twitter.

This is not the first time SparkPool has found itself in this kind of a situation. Last year, it froze transaction fees worth 2100 ETH (worth around $300,000 at the time) associated with a mysterious transaction that may have been the result of a buggy trading bot.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

DAOs: An Institutional Guide to Decentralized Governance

Arca provides fundamental information about decentralized autonomous organizations (DAOs) for institutions transitioning into the age of tokenized ecosystems. This guide explores the components, purpose, functions, and practical applications of these nascent entities and the opportunities and challenges for this compelling governance approach.
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More