In brief
- Paxos mistakenly minted 300 trillion PYUSD tokens last week before burning them 24 minutes later in what the company on Wednesday called an “internal technical error” that never left its systems.
- The Paxos co-founder said “the mistake was entirely ours” and blamed rarely-used manual operational processes designed for “very secure cold minting processes” for the error in the amount minted.
- The incident comes as Paxos seeks a national trust charter from the OCC under the GENIUS Act, with critics questioning whether the company should receive federal banking authority after the $300 trillion blunder.
On Wednesday, Paxos Chief Executive Charles Cascarilla attempted to frame the company’s accidental minting of $300 trillion worth of PayPal’s stablecoin last week as evidence of blockchain transparency rather than a system failure.
He told a Federal Reserve crypto roundtable that a manual security lapse caused the firm to create the tokens on Ethereum before immediately sending them to an inaccessible address.
The error, more than twice the value of global GDP, comes as regulators consider whether to grant Paxos a federal banking charter.
“It underscores the value of the blockchain. It actually shows the transparen
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Author: Vismaya V
