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Websites/software should NEVER convert a bitcoin address provided by the user to a different form of address automatically. You're just asking for fund loss. Absolutely the websites fault, not the user's. bitcoin.stackexchange.com/q/111440/51948

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What is worse is that P2TR uses a new checksum algorithm (bech32m), and apparently was accepted. So either: (1) they're not checking the checksum at all (2) they implemented bech32m from BIP350 but not the rest of the BIP (and not the test vectors) (3) this story isn't real.

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For various reasons, I believe that's actually what happened here: a P2TR address was entered, and interpreted as P2WSH address with the same payload.

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instagibbs.bolt12

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Definitely suspect this. There's a lot of hardcoding going on at some exchanges

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William Casarin

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Ah so they decode it properly (checksum valid) but just ignore the version and hardcode it to 0. I can totally see an engineer doing that.

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It's definitely a feasible explanation, and it has happened in the past (e.g. P2SH being interpreted as P2PKH). There is a reason we added these to the BIP... github.com/bitcoin/bips/b

4:59 PM · Dec 26, 2021