Tether’s $91B USDT on Tron at Risk from Two-Key Multisig, Security Review Finds

What happened: Blockchain security firm Hacken revealed that roughly $91.3 billion in USDT on the Tron network is protected by a 2-of-3 multisig contract with no timelock or reversal mechanism. This means that if two keys are compromised, attackers could seize full control of the contract, allowing them to mint, freeze, or redirect funds. While Hacken scored Tether just 3.3/10 for cybersecurity, it found no evidence of an actual breach. Simultaneously, rating agency Bluechip upgraded Tether’s corporate grade from D to C, based on a KPMG US audit showing reserves exceeded liabilities by $6.8 billion as of December 31, 2025.

Why it matters: The findings highlight a critical split between financial and technical risk: Tether’s reserves are robust, but its on-chain security is fragile. With half of all USDT sitting behind just two signing keys, the ecosystem faces a systemic risk that could undermine trust if exploited. The tension between Bluechip’s financial upgrade and Hacken’s security downgrade underscores the need for integrated risk assessments in stablecoin markets.

Source: CoinDesk