Ethereum Wallet Pays $450,000 in Fees to Send 0.1 ETH

On February 20, a Reddit user discovered four transactions made by a mysterious Ethereum wallet, which was charged an incredible $450,000 for transferring less than 0.15 ETH. The first transaction saw the user send 0.01 ETH, which is just under $1.5, paying a transaction fee of over $30,000. The second and third transactions charged almost twice as that for transferring less than $3 worth of ETH. However, the most outrageous transaction fee was charged for transferring 0.1 ETH – 2100 ETH.

As the owner of the Ethereum address is still unknown to the public, rumors have started circulating about the cause of the preposterous transaction fees. many Reddit users and cryptocurrency experts found that this could have just as easily been an attempt to launder money.

Two of the four suspicious transactions were mined by the same miner, which led to the conclusion that the wallet holder and the miner are the same person, as a miner could have broadcasted the transaction to himself until he found the nonce of the next block.

The incident has shed a light on serious flaws in the Ethereum network, as it was found that it had no mechanism in place that would prevent such schemes from taking place.

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