Paxos Mints $300 Trillion by Accident in Record Stablecoin Blunder

Hi! In today’s edition:

• 😳 Paxos “prints” $300 trillion in stablecoins—then burns it

• ⚔️ Coinbase embraces its rival’s BNB token

• 🧨 Sui’s Typus Finance hit by $3.4M hack

• 🎙️ Traders rethink perps after brutal ADL wipeouts

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Paxos Accidentally Mints $300 Trillion PYUSD

Paxos, the issuer of PayPal's PYUSD stablecoin, accidentally minted an astonishing $300 trillion worth of PYUSD tokens on Ethereum at around 3:12 p.m. ET.

“Paxos just minted the entirety of global debt on the Ethereum Blockchain,” said blockchain analytics firm Arkham. 

The error happened during an internal transfer due to what appears to be a decimal mistake — Paxos likely intended to mint $300,000 but ended up with $300 trillion because PYUSD has 6 decimals.

“This was an internal technical error. There is no security breach. Customer funds are safe. We have addressed the root cause,” said Paxos on X. 

The tokens were promptly burned around 20 minutes after the error, after being sent to an unreachable wallet address, effectively eradicating the excess supply.

Chaos Labs founder Omer Goldberg noted that PYUSD markets on decentralized lending platform Aave had been temporarily frozen as a precautionary measure.

It’s not the first time Paxos has made an embarrassing fat finger transaction error. In September 2023, Paxos paid $500,000 in fees for a $2,000 transfer on Bitcoin. 

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Coinbase Adds Rival Binance’s BNB to Listing Roadmap

Coinbase has added BNB, the native token of Binance-backed BNB Chain, to its asset listing roadmap.

The addition of BNB marks a historic first for Coinbase, as it represents explicit support for a token issued by its largest competitor, Binance.

Coinbase announced the move shortly after unveiling its “Blue Carpet” initiative — a new listing framework designed to simplify and democratize token onboarding while removing listing fees for issuers.

“Truly a masterclass of marketing from Coinbase happening right now,” said Polygon Community Lead @smokey_titan on X.

“Binance gets called out by people regarding how they list tokens garnering a massive amount of attention. In response, Coinbase lists BNB on their exchange, coupling it with an update on their roadmap for transparency around token listings.”

Sui-Based Typus Finance Loses $3.4 Million in Hack

Typus Finance, a decentralized finance (DeFi) platform built on the Sui blockchain, lost $3.4 million in an exploit.

“Approximately one hour ago, our TLP [Typus liquidity pool] contract was exploited via an oracle vulnerability regarding a lack of authority checks,” said Typus Finance in an X post at 10:18 a.m. ET on Wednesday.

“To protect all users, ALL Typus smart contracts have been immediately PAUSED.”

In the Typus Finance ecosystem, a TLP contract represents the core liquidity pool that supports perpetual trading markets on the Sui blockchain.

Blockchain security firm Hacken found that the hacker had already swapped the stolen funds to DAI around two hours later, and that the original wallet was originally funded by Tornado Cash.  

Why Perps Are Not a Risk-Free Hedging Tool—Especially During Crashes

Friday’s flash crash didn’t just wipe out longs—it also hit delta-neutral funds and market makers who thought they were properly hedged using perps.

Carlos Guzman of GSR and YQ of AltLayer explain why perps failed so dramatically as hedging instruments, how Auto-Deleveraging (ADL) and oracle issues caused widespread forced liquidations, and why many professional traders are now questioning the viability of using perps for anything beyond directional exposure.

• 🏦🧨 Erebor, a newly approved U.S. bank backed by $275 million and linked to tech billionaires like Palmer Luckey and Peter Thiel, secured fast-track approval from regulators to serve crypto, AI, and defense-focused businesses—sparking political backlash over its Trump-era ties and future role in stablecoin services.

• 🆙 Polymarket expanded into traditional finance with new markets letting users bet on whether stocks or indices will go up or down by a set deadline, using trusted sources like Nasdaq and the Wall Street Journal to settle results.

• 🌐 The Ethereum Foundation deployed another $9.6 million worth of ETH plus stablecoins into DeFi lender Morpho’s yield vaults, advancing its strategy to shift more of its $820 million treasury into decentralized protocols rather than relying solely on crypto-to-cash sales.

• 🐉 Jovay Network, an Ethereum layer 2 built by Alibaba’s Ant Digital unit, drew attention after publicly aligning with Ethereum, despite quietly launching in April with $50 million in assets and a focus on tokenizing real-world financial products.

• 🪐 MegaETH opened registration for a possible token sale via crypto influencer Cobie’s Sonar platform, embracing a more community-driven ICO model that includes soulbound NFTs and strict access rules to reduce farming and increase user alignment.

• 🇰🇷🔄 Binance finally received regulatory approval to fully acquire South Korean exchange Gopax after a two-year delay, clearing the way for its return to the country’s crypto market, which it exited in 2021 amid compliance concerns.

• 🔗🏛️ Superstate and crypto exchange Backpack announced a partnership to list SEC-approved, natively tokenized public stocks directly onchain, allowing traders to buy real equities with crypto-like settlement and margin features for the first time.

• 💳 Sony Bank applied for a crypto banking charter via its subsidiary Connectia Trust, seeking to issue stablecoins and offer digital asset services as the company enters a booming sector projected to surpass $360 billion by early 2026.

• 📈📲 SoloTex, a trading platform from Texture Capital and Sologenic, won FINRA approval to offer tokenized U.S. stocks to retail investors using stablecoins—aiming to deliver real share ownership with dividends and voting rights, unlike most offshore wrappers.

• 💰🌍 Stablecoin-focused payments startup Better Payment Network raised $50 million in a seed round led by YZi Labs (formerly Binance Labs) to build cross-border liquidity tools aimed at reducing the cost and wait time for stablecoin transactions in emerging markets.

• 📈🇺🇸 Kraken bought the U.S.-licensed Small Exchange from IG Group for $100 million in cash and stock, gaining the ability to directly offer crypto derivatives like futures to American users under federal oversight, as it gears up for a possible IPO.

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