Paxos minted 300 trillion PYUSD tokens due to a technical error, which the company quickly recognized and rectified by burning them shortly after. This issue surrounding the massive minting has led to scrutiny from regulators regarding Paxos’s reliability.
Paxos CEO Charles Cascarilla addressed the incident, framing it as proof of blockchain transparency. He noted that the company’s internal systems ensured the tokens remained within control, although this mistake raised concerns as Paxos pursues a national trust charter.
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