Paxos accidentally minted $300 trillion of PYUSD, then burned it within minutes. The episode shows stablecoin issuers can create and delete synthetic dollars at will and reverse mistakes on-chain—unlike Bitcoin’s irreversible transfers. That power concentrates operational risk and raises governance questions even when no customer is harmed.
— It highlights why stablecoins need controls, transparency, and regulation suited to centralized monetary power, not just crypto‑native assumptions about irreversibility.
msmash
2025.12.01
70% relevant
Beijing’s warnings about fraud and cross‑border transfers map onto operational risks highlighted by past issuer errors (e.g., mass accidental minting): the article shows a regulator reacting to both AML and centralized‑issuer failure modes that can enable large illicit flows.
msmash
2025.10.16
100% relevant
Paxos’s mistaken $300 trillion PYUSD mint and rapid burn recorded on Etherscan.
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