Paxos Acknowledges Responsibility for $500,000 Bitcoin Transfer Fee Error

Aakarshan590

According to a statement dated September 13th, the account responsible for the $500,000 transfer fee for a $2,000 Bitcoin transfer belongs to Paxos' servers. Paxos has claimed responsibility for this, and the end users were not affected. All user funds are secure. A representative from Paxos stated that PayPal is not liable as the error was their own making, saying, "Paxos overpaid BTC network fees on September 10, 2023. This only impacted Paxos' operations. Paxos customers and end users were not affected, and all customer funds are secure. This was due to an error in a single transfer and has since been rectified. Paxos is in contact with miners to reclaim the funds." The erroneous transaction reportedly occurred on September 10th, with the sender paying approximately 20 BTC in fees (worth over $515,000 at the time) but only sending 0.07 BTC (valued at less than $2,000 at the time).