Bitcoin, Hot News

Incognito User sent $1 Billion worth of BTC, only paying $3 in Transaction Fees

This morning a back-to-back transaction happened with an amount of 45,671 BTC ($602M) and 43,185 BTC ($570M) leaving Xapo account to different wallets. The total went over $1.1B in BTC, and the total transaction fee is just $3.54.

Although one account sent them, the funds went to two different unknown wallets.

It is not natural for Xapo wallets to send big chunks of Bitcoin, and not usually massive. In the previous week, 4,000 BTC and 1,000 BTC amount left Xapo wallets. However, the size of the latest transactions makes it look like a dwarf.

“There are multiple reasons for large crypto transfers like this: the most obvious one is that Xapo is moving funds to cold storage for safekeeping,” MyEtherWallet CEO Kosala Hemachandra remarked.

“The other reason could be that the owner of these funds is ready to diversify. Coming from the Ethereum side, I’d like to assume the owner is preparing to move the funds to Ethereum as ETH or using renBTC.”

With several large transactions, there will always be a chance that there will be a security vulnerability that has been exploited.

Notwithstanding the reason, a similar transaction will be infeasible at a bank. Meanwhile, an automated clearing house (ACH) transfer will be free at most banks, customers would face daily and monthly limits.

The wire transfer has advantages. One, the domestic transfers can usually transfer funds on the same day; two, the customers can send more. Chase Bank is allowing up to $250,000 each day for private accounts, signifying that it will only take about 13 years to send all the money.

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