Bad gas: Crypto miner returns $24M in Ether fees after Bitfinex blunder

An Ether miner will hand back $24 million in gas fees after Bitfinex made a “fat-finger" error while depositing Tether to an exchange.

Bitfinex made a “fat-finger” error on Monday while trying to deposit funds on decentralized exchange DeversiFi. The mistake bestowed one Ethereum miner with about $24 million in transaction fees.

Luckily, the accidental millionaire agreed to hand the crypto back to Bitfinex, according to BNN Bloomberg. The Hong Kong-based crypto exchange initially wanted to move just $100,000 worth of Tether (USDT).

Luckily, DeversiFi confirmed Tuesday via Twitter that the kind-hearted recipient had returned the Ether.

A Bitfinex spokesperson told Bloomberg: “In transactions such as these, the fees are shouldered by third-party integrations with Bitfinex.”

“This has also been confirmed by DeversiFi in their recent statement. We look forward to DeversiFi’s investigation and to their having this matter sorted on their side.”

DeversiFi and Bitfinex know each other well

It should be noted that DeversiFi and Bitfinex have a very close relationship. Bitfinex actually launched DeversiFi in 2017 as “Ethfinex,” before it was rebranded and spun out into its own company.

DeversiFi is also run by Wil Harborne, son of Brexit bankroller Christopher Harborne, who Protos revealed earlier this year as a Digfinex shareholder (Bitfinex and Tether’s parent company).

In any case, a “fat-finger trade” is where a trader makes an error while inputting figures related to an intended transaction.

It’s a relatively easy mistake to make in crypto but can have huge repercussions — particularly given the supposedly irreversible nature of transactions.

DeversiFi and Bitfinex signed a new agreement just last week to work together to facilitate cheap Tether transfers. So this high-profile error is a rough start.

[Read more: Cashed-up crypto exchange FTX heads to Bahamas — closer to Tether]

But Bitfinex isn’t the only platform to make distribution errors recently.

In May, digital asset firm BlockFi accidentally distributed more than 700 BTC ($27.5 million) to 100 clients instead of sending stablecoin GUSD (Gemini Dollar).

Several customers joked that they were millionaires for about three hours before promptly returning the Bitcoin, with many threatened with legal action.

Follow us on Twitter for more informed crypto news.

Join our newsletter and get crypto news in your inbox

Newsletter

© 2021 Protos