Paxos Mints Burn $300 Trillion in PYUSD in A Minutes: What Happened?

The crypto world got a shock when Paxos minted $300 trillion in PYUSD, only to burn it 20 minutes later! That’s enough to clear global debt and still have cash for a fancy dinner. No hack, just a big oops.

Let’s unpack this wild stablecoin news, why it happened, and what it means for PYUSD and Paxos.

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The Massive Mint: A $300 Trillion Mistake

On October 15, 2025, Ethereum’s blockchain lit up, Paxos minted 300 trillion PYUSD tokens at 3:12 PM EST. Pegged 1:1 to the USD, that’s $300 trillion, over twice Earth’s $117 trillion GDP, per IMF data. 

For context, PYUSD’s usual market cap is $2.3 billion, trailing giants like USDT and USDC. This wasn’t pocket change, it was a jaw-dropping leap from Paxos’ prior $120 billion in total stablecoin issuance.

Early theories? A blockchain tracker glitch, misreading raw token units (PYUSD uses 6 decimals), making $300 million look like trillions. But nope, the mint was real, costing just $2.66 in Ethereum gas fees. 

Crypto Twitter buzzed with “Paxos error” theories, as this was no planned moon mission for the PayPal-backed stablecoin.

Read Also: PayPal USD Price Prediction 2025, 2026–2030

Swift Burn: Trillions Vanish in a Flash

Paxos didn’t let it linger. By 7:34 PM UTC, just 22 minutes later, they burned all 300 trillion tokens, sending them to a dead-end wallet. 

Poof, gone! This “fat-finger” fix, likely extra zeros in an internal transfer, kept PYUSD’s supply steady. Earlier that day, Paxos moved 300 million PYUSD in two legit transactions, hinting at a simple slip-up, not a scam.

• Quick Action: Paxos burned the tokens in under 30 minutes, using $2.40 in gas fees, ensuring no impact on PYUSD’s $2.3 billion market cap.

• Price Stability: The stablecoin’s USD peg held firm, with only a brief 0.5% dip, showing its resilience despite the chaos.

Why It’s a Big Deal: Stablecoin Scale Exposed

This blunder dwarfs past token burns. OKX torched 65 million OKB in August 2025 to cap supply at 21 million. Bonk burned 1.7 trillion tokens in December 2024, worth $50 million. 

Paxos? They “burned” enough to buy the planet. It shows how one typo can shake trust in programmable money.

Industry Impact: DeFi Feels the Ripple

The crypto space felt the shock. Aave, a DeFi platform, froze PYUSD trades after Chaos Labs’ Omer Goldberg flagged the “high-magnitude transaction.” 

This wasn’t just a Paxos error, it rippled across markets, raising questions about stablecoin safeguards and why no hard caps stopped the over-mint.

Paxos’ Response: “Just a Glitch, Folks”

Paxos took to X, saying, “We mistakenly minted excess PYUSD in an internal transfer. No security breach, customer funds are safe, and we fixed the root cause.” 

They later minted a proper $300 million to balance things. PayPal, who partnered with Paxos for PYUSD’s 2023 launch, stayed quiet, but the stablecoin’s USD reserves and Treasuries backing held strong.

• Transparency Win: Paxos’ quick fix and open statement calmed fears, proving no funds were lost or systems hacked.

• Trust Reassured: PYUSD’s peg and reserves stayed intact, showing stablecoins can weather internal storms.

Read Also: Paypal Expands Its P2P Crypto Payments! Here is How

Crypto’s Reaction: Memes and Tough Questions

Social media lit up with jokes, “Paxos could pay off U.S. debt!”, and shade. Gnosis’ Martin Köppelmann tweeted, “Not a good look to mess up decimals.” 

Humor aside, critics slammed Paxos’ controls, asking, “What if this was real money?” The incident sparked debates on stablecoin safety and error prevention.

Regulatory Heat: Charter Dreams at Risk?

Paxos is chasing a national trust charter from the OCC under the GENIUS Act to operate as a U.S.-wide bank. This error couldn’t have come at a worse time. 

Better Markets’ Amanda Fischer warned, “A fat-finger boosting supply 120,000x? Regulators, take note.” The mistake fuels scrutiny on Paxos’ tech safeguards and stablecoin oversight.

Lessons Learned: Stablecoins Need Tighter Rails

This Paxos PYUSD fiasco is a wild reminder: crypto’s transparent, but human errors can still cause chaos. Blockchains catch mistakes instantly, but without hard caps or stricter audits, trillion-dollar typos could slip through. 

The good news? No user funds were hit, and PYUSD’s peg held strong, proving stablecoin resilience.

What’s Next for Stablecoins?

The incident pushes the industry to rethink minting controls. Stablecoins like PYUSD are growing fast, but regulators and users want ironclad systems. 

Paxos’ quick fix is a win, but the error flags gaps in testing. Expect more focus on proof-of-reserves and automated checks to keep trust high.

Read Also: What is Token Burning? Explanation in Baby Language

Conclusion

Paxos’ $300 trillion PYUSD mint-and-burn was a hilarious hiccup that exposed stablecoin risks. It’s a call for better safeguards as crypto grows. 

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FAQ

How did Paxos accidentally mint $300 trillion in PYUSD?

It was likely a “fat-finger” error during an internal transfer ,  someone added too many zeros, creating trillions instead of millions.

Was the $300 trillion PYUSD mint a hack?

Nope, it wasn’t a hack. Paxos confirmed it was a technical glitch, not a security breach, and user funds stayed safe.

How fast did Paxos fix the minting mistake?

Paxos burned all 300 trillion PYUSD within 22 minutes, spending just $2.40 in gas fees to erase the error.

Did the PYUSD price or peg drop after the incident?

Barely. The peg stayed solid with only a tiny 0.5% dip, proving PYUSD’s stability even under wild circumstances.

What does this mean for stablecoin security?

It shows stablecoins need stricter minting controls and automated checks to prevent trillion-dollar typos in the future.

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