Oh! An Ethereum user paid over $90,000 in gas fees for a $2,200 transfer.
TLDR
An anonymous crypto user spent $90,000 in gas fees to transfer $2,200 worth of Ether (ETH). The user spent 34.26 ETH in gas fees ($89,200) to transfer 0.87 ETH ($2,262 worth). Current gas fees on the Ethereum network are low per year, meaning a regular transfer costs only about $5. This event is an example of “fat finger” trading, which is unusual in the crypto space. Perhaps coincidentally, such transactions can be used to disguise sophisticated currency.
An anonymous user made a costly mistake while trying to transfer Ethereum (ETH). A simple $2,200 transfer turned into a $90,000 error, highlighting the potential complications of managing digital assets.
According to information shared by anonymous user DeFiac on social media platform X, an anonymous crypto user spent 34.26 ETH in gas payment, approximately $89,200 at current prices, to transfer only 0.87 ETH, worth only $2,262. This represents a payout of over 1,783,900% compared to typical transaction costs.
Someone burned ~$90k in tix fees for a simple eth transfer. pic.twitter.com/R9beCnNZv1
— DeFiac (@TheDEFIac) August 11, 2024
The incident occurred at a time when gas fees on the Ethereum network were hovering at an annual low of between 2 and 4 gwei. Under normal conditions, ETH transfer should not exceed $5. This stark comparison highlights the extent of user error.
Often referred to as “fat finger” trading in the crypto community, this type of error is unprecedented.
Similar incidents have occurred in the past, involving both individual users and even established crypto exchanges.
For example, in October 2023, an NFT trader paid 1,055 ETH (worth $1.6 million at the time) for just $1,000 in NFT. In another case, an OpenSea collector released 100 ETH ($191,000) in a free NFT mint. In May 2021, Singapore-based crypto exchange Crypto.com accidentally sent $7 million to Australian user Tevamanogari Manivel. Manivel used the money to buy millions of dollars and sent about $4 million to an overseas bank account. She was later sentenced to 209 days in jail for “handling the proceeds of crime.”
While such overpayments are often caused by user error, some experts suggest they can be used for more nefarious purposes.
In theory, sophisticated money laundering could involve the intentional payment of gas bills. This requires the user to verify which Ethereum validator will process the transaction and that it is entered in the correct block. The user should work closely with this verifier to ensure that the funds are not distributed incorrectly.
However, the probability of this situation is relatively low. In the year According to a report released by crypto staking firm Northstake in October 2023, the total illegal and high-risk activity across three Ethereum staking protocols and some mainnet areas is between 0.46% and 1.56%.
While these numbers are small, they raise concerns among regulatory bodies looking to investigate liquid stock protocols and Ethereum-based decentralized finance.
