Bitfinex fat-fingers $23 million fee for a $100k transfer on Ethereum ๐จ This article is 3 years old...
Bitfinex fat-fingers $23 million fee for a $100k transfer on Ethereum
Bitfinex carried out the transaction using the newly implemented EIP-1559 upgrade that was designed to push the gas fees of the network lower.ย
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Updated: Sep. 28, 2021 at 7:26 am UTC
Photo by DrawKit Illustrations on Unsplash
According to available data on Etherscan, Bitfinex paid 7,676.6 Ethereum (worth $23.3 million) to move just $100,000 worth of USDT to DeversiFiโs wallet, a decentralized exchange related to it.
Bitfinex spends over $23 million on $100,000 transaction
Speaking on the transaction, a DeversiFi spokesperson confirmed the outrageous gas fee in his statement. According to the representative, โAt 11:10 UTC on the 27th September, a deposit transaction was made using a hardware wallet from the main DeversiFi user interface with an erroneously high gas fee.โ
The DEX revealed that it was investigating the cause of the error and that the funds of its users remained safe despite the cause for concern.ย
Interestingly, Bitfinex carried out the transaction using the newly implemented EIP-1559 upgrade that was designed to push the gas fees of the network lower.ย
Many crypto enthusiasts had hitherto complained of the high gas fees associated with the second largest crypto assetโs blockchain which led to the upgrade.
Since the upgrade, the network has enjoyed more predictable base transaction fees, thus, this high gas fee is a freak occurrence.
Available information also reveals that the transaction was mined by an unknown Ethereum miner who is among the top 10 miners by lock in the last week.
Crypto community reacts
Members of the crypto community have begun to react to the announcement by the DEX. One Twitter user with the username @Tygas said it was probably the work of a hacker. While another Twitter user claimed the transaction was โsuspicious.โ
Seems like hacker was able to make a transaction with custom fees, but was not able to own it as you can only send to whitelisted address
— Tygas (@Tygas) September 27, 2021
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Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitfinex
Bitfinex is a digital asset trading platform offering state-of-the-art services for digital currency traders and global liquidity providers.
