{"id":22768,"date":"2023-08-08T12:13:24","date_gmt":"2023-08-08T12:13:24","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/paypals-stablecoin-can-wipe-out-account-balances\/"},"modified":"2023-08-08T12:13:24","modified_gmt":"2023-08-08T12:13:24","slug":"paypals-stablecoin-can-wipe-out-account-balances","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/paypals-stablecoin-can-wipe-out-account-balances\/","title":{"rendered":"PayPal&#8217;s stablecoin can wipe out account balances"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691495645754-a854c45b-0102-4612-9a42-434bb7e47a66-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691495645754-a854c45b-0102-4612-9a42-434bb7e47a66-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691495645754-a854c45b-0102-4612-9a42-434bb7e47a66-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/08\/1691495645754-a854c45b-0102-4612-9a42-434bb7e47a66-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>PayPal launched its stablecoin on the Ethereum blockchain.<\/li>\n<li>Huobi has already announced it will launch the new stablecoin.<\/li>\n<li>The PYUSD has an \u201cassetProtection\u201d role that can wipe your balance in two transactions (first `freeze`, then `wipeFrozenAddress`).<\/li>\n<\/ul>\n<p>The recently <a href=\"https:\/\/coinjournal.net\/news\/paypal-launches-a-us-dollar-stablecoin-on-the-ethereum-blockchain\/\">launched Paypal stablecoin<\/a>, the Paypal USD (PYUSD), has been reviewed by Pashov, an expert in smart contracts security reviews. The PYUSD was announced on August 7 and a brief review has shown some unsettling revelations as posted by Pashov on X platform on the same day that the stablecoin was launched.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">The new Paypal USD stablecoin has an &#8220;assetProtection&#8221; role which can wipe your balance in two transactions (first `freeze`, then `wipeFrozenAddress`)<\/p>\n<p>In smart contract security we call this a &#8220;centralisation attack vector&#8221; <a href=\"https:\/\/t.co\/RsmqvsnKvi\">pic.twitter.com\/RsmqvsnKvi<\/a><\/p>\n<p>\u2014 pashov (@pashovkrum) <a href=\"https:\/\/twitter.com\/pashovkrum\/status\/1688591468498239496?ref_src=twsrc%5Etfw\">August 7, 2023<\/a><\/p>\n<\/blockquote>\n<p>According to Pashov, selected development team members at PayPal will be able to execute delicate code functionalities like freezing accounts and cleaning frozen account balances using the \u201cassetProtection\u201d role.<\/p>\n<h2>USDT and USDC have similar attack vectors<\/h2>\n<p>While a majority of crypto enthusiasts expected PayPal\u2019s stablecoin to stand out, Pashov\u2019s revelation revealed that the new Paypal USD stablecoin is no different to USDT and USDC in terms of security.<\/p>\n<p>The PayPal USD (PYUSD), the <a href=\"https:\/\/coinjournal.net\/tether\/what-is-tether\/\">Tether (USDT)<\/a>, and the USD Coin ( USDC), all have \u201cassetProtection\u201d role, which in smart contract security is referred to as a \u2018centralization attack vector.\u2019\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Newsflash: USDT &amp; USDC both have similar attack vectors as well. I thought this one might be different, but it&#8217;s really isn&#8217;t.<\/p>\n<p>\u2014 pashov (@pashovkrum) <a href=\"https:\/\/twitter.com\/pashovkrum\/status\/1688615907323428865?ref_src=twsrc%5Etfw\">August 7, 2023<\/a><\/p>\n<\/blockquote>\n<p>The feature makes PayPal stablecoin a centralized stablecoin just like a majority of other popular stablecoins.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/concerning-revelation-paypals-stablecoin-can-wipe-out-account-balances\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) PayPal launched its stablecoin on the Ethereum blockchain. Huobi has already announced it will launch the new stablecoin. The PYUSD has an \u201cassetProtection\u201d role that can wipe your balance in two transactions (first `freeze`, then `wipeFrozenAddress`). The recently launched Paypal stablecoin, the Paypal [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":22769,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22768"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=22768"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22768\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/22769"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=22768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=22768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=22768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}