Ethereum (ETH) Network Sees Transactions with Exorbitant Mining Fees

Ethereum (ETH) has again shown transaction fees that far exceed the block rewards. Etherscan revealed several such instances, in one case the amount reaching 2,100 ETH. Other transactions saw fees of 420 ETH and 210 ETH.

In the past, wallet mistakes or attempts to speed up a payment have led to high fees. With initial coin offerings, the need to push the transaction has led to relatively high fees.

In this case, however, Reddit users suggest this may be a form of money laundering. A transaction fee is received by the miner producing the block that contains the transaction in question. The analysis shows that it is possible for a miner to generate a high-fee transaction and then receive the funds again. This type of transfer is seen as a form of laundering since the source of the funds is now obscured.

The problem with such laundering is including the transaction in a block that will go to a known miner and most probably to the very same entity that issued the transaction. Collusion within mining pools or other connections with miners were also seen as possible.

Reference: https://cryptovest.com/news/ethereum-eth-network-sees-transactions-with-exorbitant-mining-fees/

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