Paxos Error Results in $300 Trillion Token Mint
Paxos unintentionally minted $300 trillion PYUSD on Ethereum on October 15, 2025, due to a technical error, promptly burning the excess within 22 minutes, ensuring customer fund safety.
Paxos, issuer of PYUSD stablecoin, revealed an internal technical error led to the accidental minting. Excess tokens, valued at nearly 2.5 times global GDP, were all burned swiftly.
Paxos took prompt action, ensuring that no customer funds were impacted. An official statement declared the incident resolved, safeguarding user security with measures already in place.
PYUSD Minting Incident Causes Minimal Market Impact
This minting error initially caused market turbulence, with minor price deviations in PYUSD temporarily observed. The Ethereum and Bitcoin markets, however, remained stable during the incident.
Aave temporarily froze its PYUSD markets as a precautionary measure. No financial implications affected other major tokens, ensuring market stability in the broader crypto environment.
Accidental Mint Parallels Past Crypto Errors
This accidental minting incident parallels past errors in scale, notably larger than previous crypto "fat fingers." The error was rectified rapidly to avoid market disruption.
Experts predict increased scrutiny on technical systems to prevent future occurrences. Data from historical trends indicate successful resolution boosts stakeholder trust, maintaining system integrity.
"This was an internal technical error. There is no security breach. Customer funds are safe. We have addressed the root cause."
- •Paxos mistakenly mints $300 trillion PYUSD on October 15, 2025.
- •Excess tokens burned in 22 minutes.
- •Paxos confirms no impact on customer funds.