The miner of the block was contacted by DeversiFi to return the funds and was rewarded generously for the honesty. The exchange also fixed the issues which caused the fiasco.
Bitfinex had transferred USDT 100,000 to its layer-2 subsidiary DeversiFi on Monday. Unwittingly, Bitfinex paid 7,676 ETH, worth $23.7 million, a mind-boggling sum, as gas.
The average transaction fee was worth $46 for that day. Currently, ETH is trading at $2806.
DeversiFi made an earnest appeal that met a positive response from the miner.
It tweeted that the miner of Block 13307440 returned the transaction fees.
Recovery of Funds
DeversiFi discovered that the miner was depositing the transaction fees to Binance. So, the company contacted Binance who obliged the request and connected both the parties by sharing DeversiFi’s email with the miner.
The miner emailed the exchange at 20:36 UTC + 1 and “reached a process for safely returning funds.”
In just an hour, DeversiFi received 7626 ETH. The remaining 50 ETH were offered by the exchange, as a token of appreciation, to the miner.
Causes and Remedies
DeversiFi published a post-mortem report sharing the results of the investigation its team carried out.
It explained that the “Underlying issues in the EthereumJS library coinciding with gas fee changes associated with the EIP-1559 upgrade in some circumstances can lead to transactions with extremely high fees.”
Furthermore, the team noted, Ledger hardware wallets sometimes display fees in a “non-human readable” form, removing a key human safety check. The person in charge may have mistakenly submitted the transaction without understanding the gas fee displayed.
Wallets containing large amounts of funds are likely to be impacted by such anomalies; other users may see a failed transaction.
The team has added “additional safety and sanity checks” ensuring gas fees remaining consistent with the contemporary trend.
It also discussed with the Ledger team about “anomalies discovered during testing which could obfuscate abnormally high fees for any Ethereum transaction.”
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