Spin glasses are systems whose magnetic moments freeze at low temperature into random orientations without long-range order 1 . It is generally accepted that both frustration and disorder are essential ingredients in all spin glasses, so it was surprising that PrAu 2 Si 2 , a stoichiometric compound with a well-ordered crystal structure, was reported 2 to show spin-glass freezing. Here, we report on inelastic neutron scattering measurements of crystal-field excitations, which show that PrAu 2 Si 2 has a singlet ground state and that the exchange coupling is very close to the critical value to induce magnetic order. We propose that spin-glass freezing results from dynamic fluctuations of the crystal-field levels that destabilize the induced moments and frustrate the development of long-range magnetic correlations. This novel mechanism for producing a frustrated ground state could provide a method of testing the concept of 'avoided criticality' in glassy systems.Frustration arises from competing interactions that favour incompatible ground states 1,3 . For example, in rare-earth intermetallic compounds, the magnetic moments of the f electrons on each rare-earth site interact with neighbouring moments through Ruderman-Kittel-Kasuya-Yosida exchange interactions that oscillate in sign with increasing separation. Except for specific classes of geometrically frustrated lattices, well-ordered crystal structures produce either ferromagnetic or antiferromagnetic order, depending on the energy minimization of the interactions between all the neighbouring moments. However, when there is disorder, in either the site occupations or the exchange interactions, the additional randomness can prevent a unique ordered ground state. Instead, these systems may form spin glasses, which possess a multitude of possible disordered ground states, into one of which the system freezes below the glass transition temperature, T g (ref. 1). In the thermodynamic limit, spin glasses show broken ergodicity, preventing significant fluctuations to any of the other degenerate spin configurations.In recent years, two stoichiometric intermetallic compounds have shown evidence of spin-glass order, URh 2 Ge 2 (ref. 4) and PrAu 2 Si 2 (ref. 2), both nominally with the same tetragonal (ThCr 2 Si 2 -type) crystal structure. In both samples, classic spin-glass behaviour was observed (T g = 11 K and 3 K, respectively), with a frequency-dependent peak in the Figure 1 Crystal-field transition in PrAu 2 Si 2 . Inelastic neutron scattering from PrAu 2 Si 2 measured at 1.5 K (red symbols) with error bars derived from the square root of the raw data counts. The solid line is a fit to the singlet-doublet crystal-field transition at ∆ = 0.7 meV (dashed line) and an elastic peak from nuclear incoherent scattering (dotted line). The shaded area represents double scattering from the transition at 2∆. The inset illustrates the mechanism for induced-moment formation, in which interionic exchange coupling, J ex , admixes the excited magnetic doublet into the singlet grou...