Last Sept. 14, the multi-signature signatories behind SushiSwap – a controversial Uniswap fork that has become one of the largest Ethereum coins and apps in two weeks of its launch has repurchased around $14 million worth of SUSHI.
As reported, what occurred was that the pseudonymous co-founder of the project sold a share of the developer funds, then in SUSHI, for ETH, and then took off with the money. He has returned after that, claiming that the decision made was a blunder.
When the situation has calmed, the multi-signature signatories, who were established to ensure that the funds could not be misappropriated again, then decided, together with the community, to spend the Ethereum that was returned to them on buying back Sushi.
A little mishap took place after the buyback of SUSHI went well.
To transact Ethereum, $188,000 was spent
Late on Sept. 14, users have noticed a weird transaction popped up on the Ethereum blockchain: someone had paid 500 ETH – amounting around $188,000 – to send 37,500 ETH from a wallet to another. 37,500 ETH is just around the sum that the pseudonymous co-founder of SushiSwap has returned after his “exit scam.”
The “normal” cost of sending Ethereum from address to address comes close to $2; it means this user has overpaid 9,400,000%.
The analysts quickly pointed out that this was a wallet connected to SushiSwap; it was previously holding the SUSHI that was repurchased on-chain.
The CEO of FTX and a multi-sig signatory of SushiSwap, it was he who made a mistake. He added that “these are my own funds” and accidentally paid that fee “out of pocket, not the treasury.”
Though Bankman-Fried did pay the $188,000 fee out from his pocket, it may not be gone forever.
A precedent of users is paying obscenely high transaction fees that get their funds returned by mining pools.
Earlier in June, a user has sent a series of transactions where the transaction fee was in spare of $2 million. Analysts like the associate professor of computer science at Cornell University, Emin Gün Sirer, suggested that this was a specific bug – and a luxurious bug at that.
Ethermine and Sparkpool mined the blocks relating to the transactions promised to return the funds to the user if they were communicated.
Remarkably, Ethermine processed the block that the SushiSwap-related transaction was in. It means that if highlighted, the funds could be repaid to SBF.