An unknown crypto user accidentally pays over 34 Ethereum (ETH) in gas fees to transfer less than 1 ETH.
The transaction was indexed by popular crypto sleuth DeFiac yesterday in an X post. According to data accompanying the tweet, the unknown user splashed 34.62 ETH in gas fees to move a paltry sum of 0.87 ETH ($2,324).
At press time, the value of the 34.62 ETH coins has surged to $92,504 from their initial worth of $90,000. Notably, data from Etherscan shows that the transaction occurred at 09:26 PM (UTC) on August 11.
For context, the average Ethereum gas fee was priced between 2 and 4 gwei earlier today. This implies that transactions on the Ethereum network should not exceed $5.
However, the anonymous user paid a massive $92,504 in gas fees for the transaction, representing an overpayment of 1,849,980%.
Other Transaction-Related Mistake
Meanwhile, similar errors have occurred in the past, with The Crypto Basic reporting a handful of such costly mistakes. For instance, during the 2021 NFT craze, a crypto user spent 22.5 ETH, worth $70,000 at the time, to purchase a TIME Magazine NFT.
Over a year later, another unknown user paid 121.56 ETH (worth $157,764) in gas fees for a transfer of 183 ETH ($237,502).
Besides retail investors, crypto-related companies have also made mistakes relating to funds transfers. In August 2022, the Crypto.com exchange mistakenly transferred AUD$10.5 million ($6.7 million) to a Melbourne user instead of an AUD$100 refund.
This type of mistake is common in the crypto space. Hence, users are always advised to double-check the details of each transaction before sending funds.
A Possible Money Laundering?
Also, the incident may not be a mistake but a complex money laundering attempt. In such a rare case, the user would need the cooperation of the Ethereum validator to manipulate the transaction details.
Popular crypto staking platform Northstake called attention to this illicit activity via a report last year. The report pointed out that illegal activity within three staking protocols on the Ethereum mainnet stood at between 0.46% and 1.56%.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
