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

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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.

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.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


Ethereum miner says it has frozen a $2.5 million fee paid alongside a $133 transaction written by Yogita Khatri @ https://www.theblockcrypto.com/linked/67881/ethereum-miner-says-it-has-frozen-a-2-5-million-fee-paid-alongside-a-133-transaction?utm_source=rss&utm_medium=rss June 10, 2020 Yogita Khatri

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