Under serious security threats, Paxos can suspend the authorization and transfer functions of PayPal stablecoins

ChainCatcher news, according to reports from Wu, based on the Github information of PayPal's stablecoin PYUSD, Paxos is able to suspend the authorization and transfer functions of PYUSD in the event of a serious security threat. Additionally, due to regulatory requirements, Paxos must have an asset protection role to freeze or seize the assets of offenders when legally required, so addresses with AssetProtectionRole permissions can initiate freezing/unfreezing or even wiping the balances of any accounts, allowing relevant authorities to seize their assets.

However, Paxos stated that it will not execute freezing operations on its own and that such situations are expected to be rare. It is understood that mainstream stablecoins USDT & USDC also have similar blacklist freezing mechanisms.