A Bitcoin user paid 1.60 BTC in network fees, equivalent to approximately ₹8.5 crore, and delivered exactly zero coins to anyone. According to reports from CoinDesk, the transaction was confirmed on August 12 inside block 962,142. Chain records show a single input of 160,343,885 satoshis, with miners taking every satoshi while the lone output carried no value at all. The current Bitcoin price stands at ₹5.3 lakh, down 0.2% over the past day, with the total market cap reaching ₹122 lakh crore.
The sender ran an automated script that utilized Replace-by-Fee (RBF) functionality, which allows users to resubmit unconfirmed Bitcoin transactions with higher fees to jump the mempool queue. As reported by CoinDesk, the loop broke when the bot raised its bid once per second, consuming deeper into the wallet balance. Eventually, the Bitcoin fee swallowed the entire input, leaving nothing for the recipient and resulting in a payment of zero coins. This demonstrates how automated RBF settings can lead to costly mistakes when not properly configured.
SpiderPool mined the block and pocketed the windfall, with fees across that block totaling approximately 1.82 BTC. According to CoinDesk, this single error supplied 88% of the total block fees. The timing proved beneficial for the pool, as a former leader filed for bankruptcy in July, creating opportunities for other mining operations. This incident highlights how mining pools can benefit significantly from network fee errors, particularly when they represent a substantial portion of block rewards.
To prevent similar incidents, CoinDesk recommends three key settings: switching off automatic RBF bumping, setting a hard fee ceiling, and always sending test payments before real transactions. At current market prices, the mistake still costs over ₹8.4 crore, resulting in a devastating loss with absolutely zero capital reaching its intended destination. The error underscores the importance of proper Bitcoin transaction management, as even automated processes can result in significant financial losses when not properly configured.
