Bitcoin user mistakenly pays $60K in fees after RBF error
A Bitcoin (CRYPTO:BTC) user accidentally paid 0.75 BTC (approximately $60,000 at the time) in transaction fees due to a panic-induced replace-by-fee (RBF) error.
The incident occurred on April 8, highlighting the risks associated with manual transaction adjustments in cryptocurrency wallets.
The user initially sent a Bitcoin transaction with a standard fee but later attempted to modify it using RBF.
The first RBF adjustment increased the fee and changed the target address.
However, a subsequent RBF transaction mistakenly included an additional unspent transaction output (UTXO) of nearly 0.75 BTC as part of the fee.
This error likely stemmed from a failure to update the change address or confusion over fee settings.
Anmol Jain, Vice President of Investigations at AMLBot, explained that the mistake may have been caused by haste or misinterpretation of fee inputs.
“Maybe he meant to use 30.5692 sat but ended up using 305,692 sat,” Jain suggested.
Another possibility is that the user misunderstood the difference between absolute fees and fees calculated per virtual byte, leading to an overcorrection.
The replace-by-fee feature, introduced in Bitcoin Core to allow users to expedite unconfirmed transactions by increasing fees, has been controversial.
While it offers flexibility for adjusting fees in response to network congestion, RBF can lead to errors and even double-spending risks if not used carefully.
Critics argue that RBF complicates transactions and reduces reliability for merchants accepting unconfirmed payments.
It also highlights the need for improved user interfaces and safeguards to prevent costly mistakes.
Bitcoin miners ultimately prioritise transactions with higher fees, making manual adjustments risky without thorough verification.
At the time of reporting, the Bitcoin (BTC) price was $76,526.13.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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