Paxos mistakenly issued 300 trillion PYUSD and quickly burned them

The company called it an “internal technical error”

A technical glitch at Paxos led to the accidental issuance of 300 trillion PYUSD stablecoins

16.10.2025 - 10:00

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Key points:

Paxos mistakenly issued 300 trillion PYUSD stablecoin tokens.
The company explained the error as a technical issue and stated that the incident had been resolved.

On October 15, stablecoin infrastructure provider Paxos mistakenly issued 300 trillion PYUSD and then burned the entire amount 22 minutes later by sending the tokens to an inaccessible wallet. Later, 300 million PYUSD were issued, and the team called the situation an “internal technical error.” .

Source: x.com

Chaos Labs founder Omer Goldberg reported that Aave temporarily suspended trading on PaPal USD after an “unexpected” large transaction involving the issuance and burning of stablecoins.

Source: x.com

According to Etherscan, the erroneous issuance of the stablecoin was made from the Paxos hot wallet and sent to the PYUSD PayPal smart contract. The issuance volume is equivalent to $300 trillion — more than the US national debt ($37 trillion) and even global GDP ($117 trillion).

The incident briefly disrupted DeFi markets, and the PYUSD exchange rate deviated from $1, but quickly stabilized after the excess tokens were burned.

According to CoinGecko, PYUSD now ranks sixth among stablecoins in terms of capitalization — about $2,6 billion.

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