Paxos Confirms $500K Bitcoin Overpayment Was Internal Error, Not PayPal's

Paxos confirms the $500K mistaken Bitcoin transaction was its own error, not PayPal's. The transaction fee was meant to be $2K.
The transaction occurred on Sept. 10 when a Paxos server overpaid fees of ~20 BTC to send 0.07 BTC worth under $2K.
Paxos claims the error impacted only its corporate operations. User funds are safe. It was a bug in a single transfer.
Speculation on X wrongly blamed PayPal due to a related wallet address identified by OXT as PayPal's.
Paxos is contacting the mining pool that confirmed the transaction to attempt recovery of the $500K overpayment.

cointelegraph.com

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