Exchanges

Bitfinex spends $23.7 million in fees to complete $100,000 transaction

  • Crypto exchange Bitfinex has paid $23.7 million in transaction fees to send $100,000 in Tether (USDT).
  • The gas limit for the transaction itself was 169,595 instead of the regular gas limit of 21,000. 85% of this gas was used
  • It is possible that this is the most expensive Ethereum transaction ever paid in dollars

Crypto exchange Bitfinex has paid $23.7 million in transaction fees to send $100,000 in Tether (USDT).

The transaction of Bitfinex was made on DeversiFi

Bitfinex completed the transaction about three hours ago. The transaction was sent from Bitfinex’s main wallet, and the money ended up in a wallet on the non-custodial exchange DeversiFi. This exchange was acquired by Bitfinex in 2019 and was the front-end used in this costly transaction.

A spokesperson of DeversiFi tweeted on their main account that on September 27 at 11:10 UTC, a deposit transaction was made via a hardware wallet on DeversiFi’s main user interface. The tweet explains that the transaction had an “erroneously high gas fee.” He also pointed out that no customer funds on DeversiFi were compromised and that it is an internal issue that DeversiFi needs to fix. According to the tweet, DeversiFi’s operations have not been affected, and the company is currently investigating the cause to determine how the issue could have occurred.

The most expensive Ethereum transaction fee ever paid?

The lucky miner of the block that included this transaction, is an unknown Ethereum miner and one of the top ten miners by blocks in the last seven days. The gas limit for the transaction itself was 169,595 instead of the regular gas limit of 21,000. 85% of this gas was used, resulting in this extremely high fee of $23.7 million. The transaction was made through the recently implemented EIP-1559, which also means that 0.053 ETH was burned.

It is possible that this is the most expensive Ethereum transaction ever paid in dollars. The last notable transactions with this high of a transaction fee were two transactions in June 2020 that totaled $5.2 million in fees.

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