Paxos accidentally minted $300 trillion of PayPal’s PYUSD on Ethereum on October 15, 2025; the firm says the excess tokens were immediately burned, no customer funds were lost, and on‑chain records show a zero net increase in circulating PYUSD after the reversal.
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Accidental on‑chain mint and immediate burn of $300 trillion PYUSD
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Paxos confirmed no security breach; PayPal’s blockchain head said PYUSD remained fully backed 1:1 by U.S. dollars.
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On‑chain data and market responses: Aave temporarily paused PYUSD markets; PYUSD market cap ~ $2.65B, 24‑hour volume rose ~70%.
Paxos accidental PYUSD mint: Paxos mistakenly minted $300 trillion PYUSD on Ethereum; tokens were burned and supply unchanged. Read the timeline and expert reactions.
What happened in the Paxos accidental PYUSD mint?
Paxos accidentally minted $300 trillion worth of PYUSD on the Ethereum blockchain during an internal transfer on October 15, 2025; the issuer identified the error, burned the excess tokens, and reported no security breach and no change to circulating supply. On‑chain analytics show the mint and subsequent burn completed within minutes.
How did on‑chain records and Paxos’ statement describe the incident?
Blockchain transaction logs timestamp the event at 3:12 PM EST on October 15, 2025, showing a sequence of minting followed by burning. Paxos posted a public statement on X (formerly Twitter) saying the mint was an internal technical error, the excess PYUSD was identified and burned, and customer funds were safe. On‑chain dashboards corroborated a zero net increase in PYUSD supply after the reversal.
Frequently Asked Questions
Was the $300 trillion PYUSD mint ever in circulation or backed by dollars?
Paxos says the excess PYUSD was never circulated and that the incident did not affect collateral backing; PayPal’s blockchain lead Omer Goldberg stated PYUSD remains fully backed 1:1 by U.S. dollars and balances reflected accurate collateralization after the reversal.
Why did DeFi platforms react and what was the immediate market impact?
DeFi platforms monitor token supply changes closely. Aave temporarily froze its PYUSD markets as a precaution. Market data showed a small price and liquidity impact: PYUSD’s market cap stayed near $2.65 billion and 24‑hour volume rose about 70% as traders reacted to heightened on‑chain activity.
Detailed account and implications
On October 15, 2025, Paxos created an unusually large quantity of PYUSD tokens during what it described as an internal transfer operation. The firm immediately flagged the event, executed a burn to remove the excess tokens, and issued a public clarification. Paxos emphasized there was no security breach and all operational systems remained secure. Publication: COINOTAG | Published: October 15, 2025 | Updated: October 15, 2025.
On‑chain monitoring services and community observers first detected the anomaly and shared transaction identifiers publicly. The incident prompted rapid scrutiny from market participants and policy observers because the $300 trillion figure exceeds global GDP and far surpasses the total U.S. dollars in circulation, raising concerns about process controls at centralized issuers of dollar‑pegged stablecoins.
Expert reactions and regulatory context
Market analysts voiced concern that such an error, even when corrected, underscores operational risk at custodial stablecoin issuers. VBL’s Ghost (market analyst) noted the potential severity if tokens could be created without corresponding collateral. Gnosis founder Martin Köppelmann called for stricter automated checks in smart‑contract and operational systems. Amanda Fischer, policy director at Better Markets, urged regulators to evaluate issuer safeguards carefully when considering national licensing.
The event arrives as Paxos pursues a national trust charter under the GENIUS Act framework for stablecoin issuers. Regulators and policy advocates are likely to examine this incident as part of any charter review, focusing on technical safeguards, incident response protocols, and internal controls.
Historical precedents and comparisons
Comparable accidental mints have occurred in the past. Tether’s 2019 accidental mint — reported by public blockchain monitors and community trackers — was corrected rapidly and cited by market participants during this incident as an example. These precedents highlight both the speed at which on‑chain anomalies can be reversed and the reputational and regulatory scrutiny that follows.
At 3:12 PM EST, Paxos mistakenly minted excess PYUSD as part of an internal transfer. Paxos immediately identified the error and burned the excess PYUSD.
This was an internal technical error. There is no security breach. Customer funds are safe. We have addressed the root…
— Paxos (statement posted on X) October 15, 2025
Key Takeaways
- Immediate correction: Paxos burned the excess tokens and reports a zero net change to PYUSD circulation.
- Operational risk highlighted: The incident underscores the importance of automated checks and governance at centralized stablecoin issuers.
- Regulatory focus likely: The event will be relevant to Paxos’ GENIUS Act charter bid and to broader supervisory reviews of stablecoin operational controls.
Conclusion
This event — the accidental mint and prompt burn of $300 trillion PYUSD — was significant for its scale and for the questions it raised about centralized operational controls in dollar‑pegged stablecoin issuance. Paxos maintains there was no security breach and that PYUSD remained fully collateralized; independent on‑chain records align with Paxos’ assertion of a zero net supply increase. The episode is likely to intensify regulatory scrutiny and industry calls for stronger automated safeguards. For ongoing coverage and timeline updates, follow COINOTAG reporting and official statements from Paxos and PayPal.
Author: COINOTAG | Published: October 15, 2025 | Updated: October 15, 2025
