US EditionPayPal's Blockchain Partner Accidentally Mints $300T in Stablecoin
Paxos burned the $300 trillion PYUSD tokens minted by mistake due to a technical glitch, exceeding the total U.S. dollar supply of $2.4 trillion, the company said.
- On Wednesday, Paxos accidentally minted $300 trillion of PayPal's PYUSD on Ethereum, exceeding the $2.4 trillion U.S. dollar circulating supply and doubling the $117 trillion global GDP.
- A technical glitch — described in reports as a fat-finger error — caused PYUSD supply to spike during an internal transfer, Paxos said on Wednesday on X.
- Paxos burned the excess stablecoins and assured clients their funds were safe, noting PYUSD is backed by liquid reserve assets valued at $2.64 billion.
- The incident raised questions about collateral controls, with observers flagging the creation of $300 trillion without matching collateral, recalling Tether's 2019 $5 billion minting error.
- Crypto-Focused outlets such as Web3 is Going Just Great amplified the story, increasing scrutiny of stablecoin issuance and controls while VBL's Ghost called it a serious mistake for Paxos.
51 Articles
51 Articles
PayPal partner accidentally mints $300 trillion in stablecoins in huge ‘technical error’
Paxos, PayPal’s blockchain partner, accidentally minted $300 trillion worth of stablecoins in what it called a “technical error,” quietly burning the tokens just minutes later.
Paxos Accidentally Mints $300 Trillion PYUSD
Paxos, the issuer of PayPal’s PYUSD stablecoin, accidentally minted an astonishing $300 trillion worth of PYUSD tokens on Ethereum at around 3:12 p.m. ET. “Paxos just minted the entirety of global debt on the Ethereum Blockchain,” said blockchain analytics firm Arkham. The error happened during an internal transfer due to what appears to be a decimal mistake — Paxos likely intended to mint $300,000 but ended up with $300 trillion because PYUSD …
Some calculators can no longer represent such sums: by mistake, units of a digital currency of 300 trillion dollars have been generated. Paxos, the issuing company, reported that the error happened in an internal transaction and was discovered immediately. Thus, the surplus units were destroyed. A so-called dollar stablecoin of the PayPal payment service (PayPal USD), which cooperates with Paxos, was affected. Stablecoins are linked to a traditi…
Die Presse
The error occurred in an internal transaction of the issuing company Paxos.
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