News Roundup — Bitcoin Miner Returns the $510,000 Overpaid Transaction Fee

September 18, 2023

Major news stories this week;

  1. Bitcoin Miner F2Pool Returns to Paxos the Overpaid Transaction Fee Worth $510,000
  2. Hacker Steals Over $690,000 After Hijacking Vitalik Buterin's Twitter Account
  3. Court approves sale of FTX digital assets, up to $3.4B worth to be unleashed
  4. Franklin Templeton files for spot Bitcoin ETF
  5. PayPal Launches Crypto to USD Off-Ramps

Story Summaries;

  1. Bitcoin miner F2Pool has successfully reversed a recent erroneous bitcoin transaction that resulted in an excessively high transaction fee of $510,000, almost 480,000 times the average network fee of $2.176. The responsible party, Paxos, acknowledged its error and identified it as a bug in a single transfer. According to on-chain data from Mempool on X, F2Pool has sent the 19.82108632 BTC fee overpayment back to Paxos. This refund comes after extensive discussions within the bitcoin community, with figures like Stake.fish founder Chun Wang expressing regret over agreeing to the refund with Paxos. On September 10, 2023, Paxos attempted to transfer a modest 0.074 BTC, valued at less than $2,000. However, an error occurred, resulting in a transaction fee of 19 BTC, equivalent to approximately $510,000. This anomaly marked the highest transaction fee ever recorded on the bitcoin network. Jameson Lopp, co-founder of CasaHODL, analyzed the incident and speculated that the mistake may have originated from a software issue within an exchange or payment processor’s address handling system. Lopp pointed out that the address in question, which had processed over 60,000 transactions, likely experienced a miscalculation in the change output, leading to the excessively high transaction fee.
  2. Ethereum creator Vitalik Buterin appears to have fallen victim to a hacker on Twitter, who went on to steal $691,000 from users who followed a corrupted link posted to his feed. The hack was first noticed on Saturday when a post appeared on Buterin’s post announcing the launch of a set of commemorative non-fungible tokens (NFTs) from software provider Consensys. This malicious link—which could have been shown to many of his 4.9 million followers—prompted victims to connect their wallets to mint the NFT, but in reality, it simply created a vacuum for the hacker to make off with their funds. The post has since been deleted, but the damage was done, as a number of victims reported losing access to funds from their wallets. Within the hour, the hacker appeared to make off with more than $147,000, but that quickly increased to $691,000, according to blockchain investigator @ZachXBT.
  3. The Delaware Bankruptcy Court has approved the sale of FTX digital assets. Judge John Dorsey made the ruling at a hearing on Sept. 13. Major changes were made to the draft order authorizing the sale on the previous day. FTX will be allowed to sell digital assets, excluding Bitcoin, Ether and “certain insider-affiliated tokens,” in weekly batches through an investment adviser under pre-established guidelines. There will be limits of $50 million for the first week and $100 million in subsequent weeks. There will be an option to increase the limit with prior written approval of the creditors’ committee and ad hoc committee or to raise the limit to $200 million weekly with approval of the court. Bitcoin, Ether and insider-affiliated tokens can be sold through a separate decision by FTX after 10 days’ notice to the committees and the U.S. trustee. The U.S. trustee is appointed by the United States Department of Justice.
  4. Asset manager Franklin Templeton applied with the United States Securities and Exchange Commission on Sept. 12 to launch a spot Bitcoin exchange-traded fund (ETF). The S-1 registration statement comes after the SEC delayed decisions on spot ETF applications from WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise and Invesco on Aug. 31 and a court ruling on Aug. 29 that the SEC must consider Grayscale’s application to covert its Bitcoin (BTC) futures ETF into a spot ETF. According to the application, the fund would be structured as a trust. Coinbase would custody the BTC, and Bank of New York Mellon would be the cash custodian and administrator. Fund shares would trade on the Cboe BZX Exchange. The SEC’s next deadline for deciding on the application is Oct. 16.
  5. Adding to its crypto product suite, payment service PayPal has launched a new off-ramp service to convert crypto tokens to USD directly from wallets into PayPal accounts. The payments giant announced on Monday that its new “Off Ramp” service is “live on MetaMask today” for U.S. users and is available to “wallets, dApps and NFT marketplaces.” In its press release accompanying the announcement, PayPal claimed that crypto users can benefit from the company’s “robust security controls and tools for fraud management, chargebacks and disputes.” The Off Ramp service is currently available for U.S. users. PayPal’s announcement follows crypto wallet MetaMask’s introduction last week of a feature enabling users to cash out their digital assets for fiat currency and send it to a bank account or PayPal account.

And that’s all for last week’s news! Wishing you a great week ahead!

Digital asset News, education and analysis

News Roundup — MakerDAO Founder Unveils Two New Stablecoins: NewStable and PureDAI
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 20, 2024
News Roundup — Tether Slams Deutsche Bank over Suggestion its Stablecoin Could Fail
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 14, 2024
News Roundup — Orange: A Bitcoin-Based Decentralized Identity Platform
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 6, 2024
News Roundup — After 6-year hiatus, Stripe to start taking crypto payments, starting with USDC stablecoin
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 29, 2024
News Roundup — Bitcoin Halving Officially Complete
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 22, 2024
News Roundup — Hong Kong approves spot Bitcoin ETFs
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 15, 2024
News Roundup — Ripple to launch US dollar stablecoin, aims to compete with USDT and USDC
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 8, 2024
News Roundup — SBF Is Going to Prison for 25 Years
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
April 1, 2024
News Roundup — SEC investigates Ethereum Foundation - Is ETH a Security?
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
March 25, 2024
News Roundup — Craig Wright Is Not Satoshi!
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
March 18, 2024
News Roundup — Nexo puts recent woes behind it with Middle East license approval
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
March 11, 2024
News Roundup — Bitcoin Tops $65K, Inches Closer to Lifetime Peak
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
March 4, 2024
News Roundup — Bitcoin ETFs Notch Best-Ever Week with $2.5bn Haul
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
February 26, 2024
News Roundup — MicroStrategy listing in the S&P 500 index could expose millions to Bitcoin
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
February 19, 2024
News Roundup - Ethereum Set for Boost as Dencun Upgrade Gets a Date
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.
February 12, 2024
News Roundup — UAE makes first cross-border payment using digital currency
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
February 5, 2024
News Roundup—FTX sold nearly $1 billion of Grayscale spot bitcoin ETF shares
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 29, 2024
News Roundup — Timeline set for Craig Wright trial on Satoshi Nakamoto identity claim
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 22, 2024
News Roundup — US SEC Approves Bitcoin ETFs in Watershed Moment for Industry
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 15, 2024
News Roundup — BlackRock names JPMorgan as authorized participants for its proposed bitcoin ETF
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 8, 2024
News Roundup — MicroStrategy bags 14,620 Bitcoin ahead of Potential ETF Approval
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
January 2, 2024
News Roundup — ‘In Argentina, contracts can be settled in Bitcoin’ — foreign minister
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
December 26, 2023
News Roundup — Gensler says SEC is taking ‘new look’ at spot bitcoin ETF proposals
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
December 18, 2023
News Roundup — Talks between SEC and Bitcoin ETF issuers in 'Advanced' Stages
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
December 11, 2023
News Roundup — MicroStrategy Piles on Bitcoin, Acquiring 0.90% of Circulating Supply
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
December 4, 2023
News Roundup — Javier Milei Is Now President In Argentina With A Pro-Bitcoin Agenda
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
November 27, 2023
News Roundup — Dubai’s chief crypto regulator exits as VARA prepares to fine major companies
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
November 20, 2023
News Roundup — UAE Cracks Down on Unlicensed Crypto Firms
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
November 13, 2023
News Roundup — 'Crypto King' Sam Bankman-Fried faces decades in jail after guilty verdict
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
November 6, 2023
News Roundup — BlackRock Preps for Bitcoin ETF Launch
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 30, 2023
News Roundup — Middle East Regulatory Clarity Drives Crypto Industry Growth
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 23, 2023
News Roundup — Bitcoin Lightning Network Growth Surges by 1,200% in 2 Years
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 16, 2023
News Roundup — Binance hit with class-action lawsuit over alleged market manipulation
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 9, 2023
News Roundup — UAE Sees Major Institutional Influx of Crypto Transactions
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
October 2, 2023
News Roundup — Binance.US Trading Volume Tumbles While SEC Dispute Heats Up
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
September 25, 2023
News Roundup — Bitcoin Miner Returns the $510,000 Overpaid Transaction Fee
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
September 18, 2023
News Roundup — ‘A Huge Deal’ - Visa Reveals Crypto Payments Bombshell That Could Cause Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Solana, Tron And Toncoin Price Chaos
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
September 11, 2023
News Roundup — All cryptocurrency businesses in Dubai come 'VARA-certified'
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
September 4, 2023
News Roundup — Craig Wright May Be Admitting That He Stole 80,000 Bitcoin
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
August 28, 2023
News Roundup — Europe's First Spot Bitcoin ETF Lists in Amsterdam
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
August 21, 2023
News Roundup — Sam Bankman-Fried Is Going to Jail
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
August 14, 2023
News Roundup — Bitcoin Is Not Crypto, The SEC Confirms
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
August 7, 2023
News Roundup — Crypto bills pass congressional committee in ‘huge win’ for US crypto
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 31, 2023
News Roundup — RFK Jr. Announces Bold Plan to Back Dollar With Bitcoin, End Bitcoin Taxes
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 24, 2023
News Roundup — Judge rules XRP is not a security in SEC's case against Ripple
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 17, 2023
News Roundup — BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 10, 2023
News Roundup — SEC Inaction on Spot Bitcoin ETF a 'Complete and Utter Disaster'
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
July 3, 2023
News Roundup — Binance Officially Exits UK After The Netherlands And Cyprus
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
June 26, 2023
News Roundup — BlackRock files for spot bitcoin ETF, with Coinbase as a crypto custodian
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
June 19, 2023
News Roundup — SEC Sues Crypto Exchange Binance and CEO Changpeng Zhao
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
June 15, 2023
News Roundup — Tether’s Market Cap Reaches New High, Exceeding $83.2B
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
June 6, 2023
News Roundup — 700M Users Of Telegram Can Now Buy, Receive, Withdraw and Trade Bitcoin P2P
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 23, 2023
News Roundup — Smart Contracts Have Arrived on the Bitcoin Blockchain
Each week we bring you a round-up of the most important Bitcoin and virtual asset-related stories making waves in the cryptosphere.­­­­
May 15, 2023
Bitcoin on the Books
Why has Institutional Investment in Bitcoin Skyrocketed in 2020?
May 4, 2023
The Merge is (Almost) Here
The long awaited ETH merger is finally drawing closer, with only a few days left until the expected date of 15th September 2022.
May 4, 2023
El Salvador’s Bitcoin Moment
With history in the making as El Salvador makes Bitcoin legal tender on September 7th, 2021, we examine the implications for the country’s financial system, its people, and the global remittance industry.
May 4, 2023
Global Workforces need a truly Global Currency
Running a multinational business? It’s time to pay your employees in Virtual Assets!
May 4, 2023
The Fall of TerraUSD, The not so Stable Stablecoin
A retrospective look at the spectacular TerraUSD/LUNA collapse and the possible reasons behind their incredible fall from grace.
May 4, 2023
Bitcoin’s Latest Upgrade — Taproot
Everything about you wanted to know about the Taproot upgrade, but were too afraid to ask!
May 4, 2023
The Other Bitcoins — A Closer Look at Bitcoin’s Hardforks
For any newcomer to Digital Assets, discovering there are other ‘types’ of Bitcoin can be confusing.
May 4, 2023
The Island of Yap & Blockchain
A look at the fascinating Island of Yap and Rai stones in what is thought to be the worlds very first use of a distributed ledger.
May 4, 2023
The Short, but Explosive History of Bitcoin
The plot line reads like a prize winning novel — an anonymous creator, economic catastrophe, FBI investigations, and… pizza!?
May 4, 2023
Bitcoin and the Rules of Consensus
Is it really possible to reach an agreement between people we’ve never met before? Using the Nakamoto Consensus it is…
May 4, 2023
Grow your business.
Today is the day to build the business of your dreams. Share your mission with the world — and blow your customers away.
Start Now