Paxos Transfer Vulnerability: $500.00K Reported Loss
Stablecoin issuer Paxos admitted in a statement that the account that paid out nearly 20 BTC in fees in a single transaction in the early hours of September 11 belonged to the company.
- Reported loss
- $ 500,000
- Attack category
- Transfer Vulnerability
Incident Overview
Paxos claims that end users have not been affected and all user funds are safe. The announcement comes after users on twitter speculated that PayPal could be responsible for the transaction, as analytics platform OXT identified relevant wallet accounts belonging to PayPal. A Paxos spokesperson said: "PayPal takes no responsibility for this as this error was caused by Paxos itself. This transaction affected Paxos company operations, Paxos customers and end users were not affected, and all customer funds are safe. This was caused by a vulnerability in a single transfer, which has now been fixed. Paxos is contacting miners to recover the funds."
Sources & References
This record presents information attributed to the linked sources. Incident dates describe the original event, not a new report. Reported loss figures reflect the source record and are not current market valuations.