The incident occurred at 3:12 PM EST and was immediately detected by Paxos’ monitoring systems. The excess PYUSD was promptly burned. Also, the company emphasized that this was a technical error. Not a security breach.
Customer funds were never at risk. So, Paxos has already addressed the root cause to prevent similar events in the future.
What Happened and Why It Matters
The announcement highlights the importance of robust monitoring and risk management in the stablecoin sector. PYUSD is designed to maintain a one-to-one peg with the U.S. dollar. This will provide users with a reliable digital alternative to traditional currency. Mistakes in minting or burning can temporarily affect the supply. But, it does not necessarily impact the backing of customer holdings. Paxos’ quick response demonstrates how automated protocols combined with strong operational oversight can mitigate risks in real time. This will maintain confidence in the platform.
At 3:12 PM EST, Paxos mistakenly minted excess PYUSD as part of an internal transfer. Paxos immediately identified the error and burned the excess PYUSD.
This was an internal technical error. There is no security breach. Customer funds are safe. We have addressed the root…
— Paxos (@Paxos) October 15, 2025
Paxos created the excess PYUSD as part of an internal transfer process.
Once identified, the tokens were immediately burned, restoring the intended supply. The firm reassured users that the breach did not compromise any accounts and that it fully secured customer funds. So, errors like this, while rare, underscore the technical complexity of managing algorithmic processes in digital finance. Paxos’ swift corrective action aligns with industry best practices, where transparency and accountability are key to maintaining trust.
🚨 NEW: PayPal becomes the richest company on Earth with $300 trillion in assets… for about 20 minutes, until Paxos burns the $300 trillion PYUSD stablecoins it just minted. pic.twitter.com/UjYprkjZkc
— Cointelegraph (@Cointelegraph) October 15, 2025
The event also reflects a broader trend in stablecoins and digital assets, where operational integrity is just as crucial as regulatory compliance. Paxos’ proactive communication and immediate burn of the excess tokens highlight the growing expectation for transparency in blockchain operations.
More About Paxos
Also, OKX has officially listed PAXG, making the gold-backed cryptocurrency available for trading on its platform. PAXG, a digital token backed one-to-one by physical gold, allows investors to gain exposure to gold’s value. This is without holding the physical asset.
The world’s oldest store of value just landed on one of the world’s biggest crypto exchanges.
PAXG is now live on @okx. https://t.co/SRGeWr5EVz
— Paxos (@Paxos) October 14, 2025
Finally, with this listing, users can now buy, sell, and trade PAXG directly on OKX. It will benefit from the exchange’s liquidity and advanced trading features. The move reflects the growing trend of tokenized commodities. It offers crypto traders a way to diversify portfolios with stable, asset-backed digital tokens.
Disclaimer
The information provided by Altcoin Buzz is not financial advice. It is intended solely for educational, entertainment, and informational purposes. Any opinions or strategies shared are those of the writer/reviewers, and their risk tolerance may differ from yours. We are not liable for any losses you may incur from investments related to the information given. Bitcoin and other cryptocurrencies are high-risk assets; therefore, conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
The post Paxos Quickly Resolves PYUSD Minting Error Safely appeared first on Altcoin Buzz.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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