Experts Divided on Second Ether Transaction With $2.6M Fee

Published at: June 11, 2020

A second transaction of 350 Ether (ETH) (worth $86,000 at press time) with an incredible $2.6 million gas fee has just been confirmed on the Ethereum blockchain, less than 24 hours after the first transaction for 0.55 ETH ($130 at press time) with an identical fee amount was processed. Both transactions were processed with a fee of exactly 10,668.73 ETH. 

Transaction details of the second unusual transaction. Source: Etherscan

Unlikely laundering

These mysterious transactions have stumped the wider community with some suggesting money laundering or revenge from a disgruntled exchange employee.

Both transactions originate from the same address, but the blocks were mined by separate miners, which reduces the possibility that the transactions are a means of laundering money or avoiding tax.

An honest mistake?

This transaction went to Bitfly’s Ethermine ETH pool, which promptly took to Twitter in an attempt to reach out to the sender:

Today our Ethermine ETH pool mined a transaction with a ~10.000 ETH fee (https://t.co/B5gRWOrcPf). We believe that this was an accident and in order to resolve this issue the tx sender should contact us at via DM or our support portal at https://t.co/JgwX4tGYr4 immediately! pic.twitter.com/sWxVRx5muv

— Bitfly (@etherchain_org) June 11, 2020

The Bitfly team have said they will work with the sender to resolve the issue as they believe it was a mistake.

Ethereum co-founder Vitalik Buterin said that a protocol upgrade, which would reduce the need for manual fee setting, should reduce the probability of these problems occurring in the future:

“Definitely a mistake. I’m expecting EIP 1559 to greatly reduce the rate of things like this happening by reducing the need for users to try to set fees manually.”

Rampant speculation

Adding to the mystery, one Twitter user mentioned that the transaction wasn’t broadcast in the same fashion normal Ether transactions are, however this is yet to be confirmed. 

Sebastian Bürgel from on-chain privacy company Hoprnet suggested that the transactions are a bug in a money laundering bot, due to the regularity of the transactions in the sender account.

This second transaction was sent to a different address than the first and besides two transactions around 5 ETH, each 45 days ago, the receiving address has not been used. The 350 ETH are still in the wallet at time of press.

Tags
Aml
Related Posts
Bitcoin and Ethereum transaction fees sink 95% from all-time highs
The cost of using the Bitcoin and Ethereum blockchains is on the rapid decline, as evidenced by a 93%–95% reduction in average transaction fees over the past couple of months. Fees are paid to the miners who process transactions on a typical proof-of-work blockchain. The size of the fee depends on the size of the transaction in bytes and how many transactions a coin has gone through in the past (as these need to be checked every time a coin is moved). Supply and demand for space also dictate the size of a transaction fee since blockchains have limited capacity. …
Blockchain / June 9, 2021
‘Expensive lesson’: 75 Eth2 validators slashed for introducing potential chain split bug
Staking infrastructure provider Staked said it had learned “an expensive lesson” after 75 of its Eth2 validators were slashed on Feb. 4 from the staking pool as punishment for producing competing blocks. In a statement, Staked took the blame for the “technical issue” and said its customers would be “fully compensated”. The company will pay the penalty of 18 ETH, which is around $29,000 at current prices. An unanticipated reaction to configuration changes caused several nodes managed by Staked to restart in error, leading them to incorrectly sign a second version of a previously-signed block. This introduced the potential for …
Technology / Feb. 5, 2021
LuaSwap using TomoChain for backend transactions
The number of projects adopting layer-two solutions for Ethereum’s scaling woes is increasing, with LuaSwap rolling out a new, TomoChain-based exchange engine yesterday. The change will enable the Uniswap inspired exchange to perform token swaps with greater speed and efficiency than many rival Automated Market Maker ERC-20 exchanges. 1/ #LuaSwap version on @TomoChainANN blockchain is live, entirely open to all $TOMO and Ethereum projects Users can now experience another $LUA version with: ✔️ Super speed ✔️ Near-zero gas fees ✔️ No network congestion Details: https://t.co/Be8claDkgT — LuaSwap (@LuaSwap) January 27, 2021 While LuaSwap remains an Ethereum-based application, transactions related to …
Technology / Jan. 29, 2021
South Korea’s Bithumb Launches Zero Fee Transfers to Global Platform
South Korea’s largest cryptocurrency exchange, Bithumb, has announced it will take another step towards global expansion by strengthening integration with its international arm. On Feb. 26, Bithumb launched a new digital asset transfer service between the South Korean exchange and Bithumb Global, an new international digital asset exchange released by Bithumb in October 2019. Meanwhile, South Korean authorities are considering imposing a 20% tax on income from cryptocurrency, evidently pushing the biggest local exchanges to reinforce their foreign operations. KYC tier 2 verification is required to use the new service In order to use the new asset transfer service, Bithumb …
Adoption / Feb. 26, 2020
Buterin: L2 transaction fees need to be under $0.05 to be ‘truly acceptable’
Ethereum co-founder Vitalik Buterin believes that layer-2 transaction fees need to be under $0.05 to be “truly acceptable.” Buterin made the latest comments in response to a Twitter post from the “Bankless” podcast host Ryan Sean Adams, who shared a screenshot of the average transaction fees for eight eight Ethereum layer-2 platforms. The data is from L2fees.info, a website that compares the cost of Ethereum’s layer-1 network in comparison to layer-2s built on top of it. The only layer-2 to meet Buterin’s desired transaction fee under $0.05 is the Metis Network at $0.02, however, a token swap on the platform …
Blockchain / May 4, 2022