Paxos Burns 300 Trillion Erroneously Minted PYUSD Tokens on Ethereum
Paxos resolves a massive minting error caused by an internal glitch, burning 300 trillion PYUSD tokens with no impact on customer funds.
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Fact Check
The statement is directly confirmed by multiple credible news sources, including Bloomberg and Yahoo Finance. These sources explicitly state that Paxos erroneously minted and then burned approximately 300 trillion PYUSD tokens. The official GitHub repository for the PYUSD contract corroborates that Paxos has the central authority to perform mint and burn functions for the token on Ethereum.
- Reference: 1
Summary
Paxos reversed a $300 trillion minting error of PYUSD stablecoins on Ethereum caused by an internal glitch. The error was immediately addressed with a burn mechanism, and no customer funds were affected. The issue was swiftly identified and resolved, with Paxos emphasizing that it was not a security breach.
Terms & Concepts
- Token burn: The process of permanently removing cryptocurrency tokens from circulation, typically by sending them to an irretrievable address.
- Ethereum network: A decentralized blockchain platform supporting smart contracts and decentralized applications, also hosting numerous ERC-20 tokens.