Paxos Mistakenly Issues $300 Trillion of PayPal Stablecoin, Exceeding Global Currency Supply

Paxos mistakenly minted $300 trillion of PayPal's PYUSD stablecoin on Wednesday during an internal transfer. Within minutes, the company identified the error and burned the excess tokens. The transaction appeared on Etherscan, then was quietly reversed before any funds moved or users were harmed.

Paxos said there was no security breach and customer funds were safe. The amount exceeded all US dollars in circulation and surpassed the entire cryptocurrency market combined. Stablecoin issuers possess the power to create or delete billions in synthetic dollars instantly -- a capability that distinguishes them from Bitcoin transfers, which are irreversible. Tether mistakenly minted and burned $5 billion in USDT in 2019.

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