Aave Suspends PYUSD Trading Following Massive Mint and Burn Incident
Paxos' unexpected minting and burning of a staggering 300 trillion PYUSD triggers Aave to halt trading temporarily.
Crypto enthusiasts faced confusion when Paxos, the stablecoin issuer, minted an astounding 300 trillion PYUSD (PayPal USD) stablecoins on Wednesday, only to burn the entire amount by sending it to an inaccessible wallet shortly after.
In response to this unexpected high-volume mint and burn event, Aave announced a temporary freeze on trades involving PYUSD, as reported by Omer Goldberg, the founder of Chaos Labs, in a post on X (formerly Twitter).
Blockchain analytics show this monumental transaction occurred at 7:12 PM UTC, where the minting was followed by the burning of the coins just 22 minutes later. Paxos confirmed the incident was due to an internal error, assuring users that customer funds are safe and that there was no security breach.
“This was an internal technical error,” stated Paxos. “We have addressed the root cause.”
This gigantic minting amount exceeds twice the Gross Domestic Product for every country in the world, based on data from the International Monetary Fund (IMF). The situation is still developing, with further updates expected to emerge.
