Paxos Accidentally Mints $300 Trillion PYUSD on Ethereum

A technical error at Paxos resulted in the accidental minting of $300 trillion PYUSD on Ethereum on October 15, 2025. The excess tokens were swiftly burned within a short 22-minute period, ensuring no impact on customer funds. This incident briefly affected the stability of the PYUSD market peg and led to temporary trading halts on Aave, but ultimately did not cause any wider market disruption. The error highlights potential operational risks in stablecoin issuance and prompted investigations into technical system safety. Experts are now focusing on strengthening preventative measures for such incidents in the future.