Ethereum News Today – Headlines for June 11

UK-based Crypto Trading Platform is Launches Ethereum Futures Contracts
  • Someone paid a whopping $2.5 Million fee just to send 0.55 ETH
  • The incident may be a money-laundering scheme
  • These types of transactions are not new to the crypto space

Ethereum News Today – someone may have mistakenly paid the lump sum of $2.5 million in Ether transaction fees to move just $133 worth of ETH. At press time, the real reason behind the transfer could be more nefarious. In the early hours of the day, before 10:00 UTC, a sender made a transaction on the Ethereum network which cost over $2.5 million. Hence, instead of going for a fee as low as $0.5, the anonymous sender paid a whopping 10,668.73 ETH (worth $2.59 million), to transfer just 0.55 ETH (worth $133.85).

The transfer fee went to Spark Pool. Spark Pool is a Chinese mining pool that handles Ether transactions. Following the incident, Spark Pool has paused payouts to its miners and is waiting for the anonymous sender to reach out to them.

Details of the Transaction

The transaction happened in block 10,237,208 on Spark Pool. Spark Pool blocked the payout to its miners and revealed to its followers on Twitter that it is currently investigating the issue and trying to identify the person or entity behind the transfer. According to reports, SparkPool has had experience in handling issues similar to this properly. Hence, the company assured it’s Twitter followers that there will be a solution to the debacle.

Spark Pool requested that the community provided tips on this mysterious transaction. Recall that, this isn’t the first time that the South Korean based miner pool has had to handle a transaction with such a high amount in fees. Going by history, Spark Pool has been able to find and share the fee with the original sender on each occasion.

These Types of Transactions are Not New to the Crypto Space

Last year, Spark Pool reportedly halted the payout of 2,100 ETH worth over $300,000 then. It was able to identify a South Korean based Blockchain company as the sender deciding to split the miner rewards with them. According to the founder of AVA Labs and Cornell professor Emin Gün Sirer, such transactions happen occasionally. There can only be two possible explanations.

The first is: it can be an honest mistake (the user can accidentally swap the number of tokens they wanted to transfer with the fee they are required to pay). The second is: it could be that the miners are laundering funds by whitewashing dirty tokens via transaction fees and changing them to clean money. At press time it is still unclear whether it was money laundering or a costly mistake.

Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.

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