Bitcoin Forum

Today Bitfinex Exchange transferred 100000 Usdt from one of their main wallets and for this transection Bitfinex spent 23.7 million $ ( 7,676.619078292762408538 Ether).

Here is the Transection ID : https://etherscan.io/tx/0x2c9931793876db33b1a9aad123ad4921dfb9cd5e59dbb78ce78f277759587115

Still now This is the largest Ethereum Transection Fees ever paid in dollar terms.

And The second highest Ethereum Transection fees paid in June 2020 worth of $5.2 million.

Isn't the whole point of crypto is to reduce this middleman huge fees like banks?

What a waste. Speaking of bitfinex and USDT, they can just print another millions of USDT on their treasury  ::)

Now it will be a headline in any media contradicting of using crypto for lower transaction fee but instead paying millions for a fee.

Was it a mistake only? I don’t know how come anyone would do such mistake though as fee estimation or fee for the tx is visible in the sending tab when someone tries to send a tx.
By the way, I can't see who mined the block. Can anyone please? In etherscan, I only saw an address; isn't it a pool? The guy must be a lucky one.

It was mined by anonymous miner https://etherscan.io/block/13307440

You can check the "mined by" with no name of the pool which it should have if a particular pool mined the block. Its a hell of a luck. If it was mined by pool or known company then they can reach to them for a refund like other incidents like this (spark pool mined  the block on previous incident and refunded 50% only). But that's not the case here.

No really, cryptocurrencies just remove the role of intermediaries. The tx fees will still be there.

For some reason, the dependence of crypto users on third parties cannot still be eliminated. Since network transaction fees are irregular and uncontrollable even by their creators, thus third parties freely charge higher than normal fees (even many times), in which case they act like blackmailers.

That's terrible that there are so many coins spent every transaction. To get rid of this unnecessary wasting of money, people move to other blockchains and layers 2.  I know that gas fees increase when the activity on the blockchain rises, so maybe that day, the activity was really high, and it was difficult for this network to manage to process transactions.

Initially crypto was created for a little bit another purpose. It must have replaced fiat money, removed intermediaries like banks and been completely uncontrolled by authorities. What comes to fees, it will be very nice if they become cheaper so that people can freely transfer their money. And actually, there are solutions of how to do that. You can just use Tron or Binance Smart chain if you don't have a big capital.

It was a mistake created by bitfinex, sometimes exchange site was doing wrong calculation for the transaction fees. This is a very big amounts to be paid as the transaction fees. it seems like bitcoin must have paid it off with their internal funds.



yes It's but the point if this mistake already made by bitfinex, the fees was so cheap but bitfinex was doing miscalculation and that's why bitfinex was paying million dollars for the fees. The network fees has nothing to do with this but you're talking about the blockchain fees and it's not related to the exchange fees as the blockchain fees can be customized based on how crow the blockchain to put your transaction in the priority transaction.

Holy how this thing can happened ? transferring 100k USDT with 23.7mils USD fee  :o
My brain cannot diggest what is happening, is the transaction fee paid the exchanges itself or what ? Where is the fee goes for ?
Or someone is having a mistakes inputing the gas fee doing this transaction ? because it seems doesn't make sense at all for a normal transaction

We don't know if Bitfinex did this on purpose or it's an honest mistake. Too bad that they've got to lose that much just for the fee. It cannot be retrieved anymore but yeah, bl4nk's right that they can just simply print with another supply of Tether.

It really can happen if mistakenly increased the fee. This has happened before and IIRC, it's a hundred thousand transaction.

It was a mistake from their part. There is no other way something like this can happen. But Bitfinex is a very experienced exchange and they are operating for many years now. For such large-scale transactions, there may be multiple verifications and audits. Did this escaped everyone's notice? BTW, now it depends on the miner. If he refuses to send back the coins, then Bitfinex will have to add $24 million as "miscellaneous expenses" in their balance sheet for the third quarter. Very unfortunate incident really.

Yes it is but sometimes automation can mess up, Blockchain itself through the smart Contract it's new things comparing to other system and it's also have some drawback where no manual operator checking it (Mostly). Etheruem itself was congested so i think it's Bitfinex mistake, maybe using other alternative network can prevent this in the future or fixing the code.

I'm not sure why they would be doing this. Is it just easy for them to do that with their capability and their money that they just decide to throw money away with that? I'm just curious if they have something under their sleeves, they should've been more discreet but no, they had to transact with a ridiculous amount of fees just to do it and now the whole world knows about it.

Is there crazy speculation going around now as to what it is?

No problem at all. Bitfinex was a money machine, the amounts that being sent to the ethereum network can be replaced with fresh money through issuing more and more USDT. This is not my first time to see that an exchange site was doing mistake. Im sure that this gives no impact on the reputation of exchange site. As per the statement that already made bitfinex is that money meant nothing for them. How a big exchange like this was doing this.
it seems like there must be a deep evaluation of its system again. Maybe API that used to report the latest transaction fees was not working properly at that time. It could be that but it's finex's problem. As long as the users didn't get any impact and it could be fine.

Is that for real or just a mistake or just a bug, how come a 100,000 USDT transaction will cost that amount of 7,676 ether? I believe that was only a mistake where on earth you can find a man in here right mind to pay $23.7 million for just a single transaction it sounds stupid to me, I believe it was only a mistake by the person who done that transaction.

I'm also wondering why they are doing this because obviously this is not a mistake since the fees will appear right before you send the money and obviously the sender has a lot of money to waste for which is higher than the transaction value.

Something is going on for sure, maybe just for a hype but this is crazy they can totally pump an altcoin with that kind of money which can benefit them a lot. Oh well they can afford this and there's no way to turn back that transactions, lucky to those miners who get the fees.

how are these mistake by bitfinex?
when we transact something, we verify it fast like as how cost fee for the transaction and receiver address is correct or wrong then when we see that everything is fine, then we will make transaction. just a mistake they lost 23$ million, what a waste of money.

Wow. Do we know how this could happen yet? Was it a mistake of a employee of Bitfinex that just added a few additional numbers at the end of the Gas price  :)? I mean 100k $ is a huge amount of money so i can imagine that big exchanges like bitfinex are not just going with the default settings in terms of gas price and that they are manually entering another gas price. So i can imagine that this was the reason for this extremely high gas fee. So i think they just added those additional numbers by mistake and they actually intended to use a gas price 53 gwei instead of 53.000.000. It's interesting though that this transaction actually went trough which means they really had 23 Million dollars worth of ETH in their wallet.

as I understood it was interface error but not human. miner already returned all 7676 ETH to Bitfinex and it was good step to maintain its good name.

If you think that this wasn't a mistake then you are very wrong. Why would Bitfinex do something like this, it would not make any financial sense at all, even if it was a marketing stunt this will not get the more in return. I believe that this was a 100% fault and someone did it without properly checking what they are doing. They were just transferring some money from one place to another and they have enough money to make this worth their value so they didn't even check.

You know what is the biggest thing out of all this mistake? They had this much money laying around to do a move, if something asked me 23 million dollars for transferring money, I wouldn't even be able to do it, but they accepted it and even if by mistake they were able to pay it. This is the proof that big exchanges are making big profits, they are really rich enough to make you wonder.

I wonder if this is human error or is it something automatic, The fees amount is a complete joke to the crypto industry.

Is this money laundering?
Seriously unethical things are happening here.

Lol! If an employee has done this transaction, he/she is in deep trouble! For a value trans6of 1 hundred thousand dollars, the fees is 23.7 million! What a joke! Vitalik must step in and apologize to the public for creating such a nuisance in the name of a cryptocurrency. Binance has sniffed this issue quite earlier and successfully running their own protocol to come out of such issues!

Seriously ETH needs an overhaul sooner than later! Not sure if the movement from pow to pos would end this issue once and for all!

No, the miner did not fully return the amount received by mistake. According to the Transaction Hash: https://etherscan.io/tx/0x85294effd53126b3bfa9e7f655267e00ac1ae2ef76f4569644670bf5403637d6 the miner returned only a part of this sum in the amount of 7385 ETH. Thus, the miner left 291 ETH as a "commission", which at the exchange rate today is approximately equal to 835 thousand dollars.

Yes it is, logically if the input for the transaction fees has been doing manually and there would not be a mistake like that. All of fees calculations on various exchange sites were happening automatically.
For a mistake that has been made by API or bug and this is not a complete joke, something must be investigated and fixed

No it's, it doesn't related to the money laundering as all of ethereum already divided among the ethereum nodes or miners. How can they get their ethereum back?

i think it was technical error because no one will make such a mistake knowingly, even bitfinex is very renowned and large crypto exchange over the world,

so i think it's not their own mistaken. this transaction fee will go in the miner pocket, so it can not be money laundering in any way.