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“Fucked up a bit”: the user paid a commission of $188,000 for the transfer of Ethereum

To overpay the commission for one transaction by 9,400,000% more than it should be – this is not a plot from a trader’s nightmare, but the reality faced by a participant in the SushiSwap project. Is this a collusion of miners or a network bug?

Confusion inside SushiSwap

DeFi-project SushiSwap, based on the Ethereum blockchain, managed to distinguish itself from several high-profile events in September. Last week, a scandal erupted over the decision of the co-founder to unauthorizedly sell part of the funds from the developer fund. This initiative turned into a sharp dump of the SUSHI token and general condemnation of the participants of the SushiSwap project.

The co-founder changed his mind in time and has already managed to return tokens worth about $14 million to the fund. Despite the public apology, the actions of the co-founder of SushiSwap have badly tarnished the reputation of one of the largest Defi projects.

“I am returning the funds to the SUSHI buyout fund. I didn’t want my actions to cause trouble for the project team.”

The storm of indignation after this scandal has not yet subsided when SushiSwap once again found itself in the epicenter of a “slippery” situation.

$188,000 сommission – why not?

On September 14, information appeared on the Ethereum blockchain about the transfer of about 37,500 ETH from one address to another. This event might not have attracted attention, if not for one “but”: the sender paid a commission in the amount of 500 ETH, which is about 188,000 US dollars. There is another problem in this event: the amount of the transfer of 37,500 ETH is equal to the amount returned by the co-founder of SushiSwap after the scandal erupted.

Note: Ethereum transfer fees are around $2. Thus, the sender overpaid by 9,400,000 percent more than it should have been. Oops.

Crypto enthusiasts became interested in this strange transaction and discovered that the crypto-address from which this transfer was connected to SushiSwap. Are fraudsters involved in this business, or the miners decided to rob a rich sender?

The tension eased markedly when Sam Bankman-Fried, FTX CEO and SushiSwap contributor, revealed that the transaction was his. The mistake, which cost him $188,000, he assessed as “a  win, not a loss for the miners”. He also managed to reassure the SushiSwap participants, noting that the money for the commission went from his budget, and not from the general fund of the project.

It is far from the first incident that a user has paid a six-figure commission. Earlier, in June, the crypto community was stirred up by the news of the payment of a commission for $2.6 million. As in the case of this user, a costly mistake by Bankman-Fried could have a positive outcome, since the miners have already promised to return the funds lost on the network.