Tether’s $91B USDT on Tron Sits Behind 2 Keys, Raising Security Concerns

What happened: Blockchain security firm Hacken rated Tether’s USDT cybersecurity at just 3.3/10, highlighting that approximately $91.3 billion USDT—about half the global supply—on the Tron network is protected by a 2-of-3 multisig setup lacking a timelock or reversal window. This means a compromise of just two keys could allow attackers to seize contract control, mint new USDT, freeze or reassign balances, and impose transfer fees, all without touching user wallets. Simultaneously, Bluechip upgraded Tether’s corporate rating from D to C after a KPMG audit confirmed a $6.8 billion reserve surplus.

Why it matters: The divergent assessments—Hacken’s low code-security score versus Bluechip’s improved financial rating—underscore a critical gap between solvency and on-chain risk. While no breach has occurred, the architectural vulnerability could expose half the USDT supply to catastrophic risk if two keys are compromised. The episode highlights the need for more holistic risk frameworks that weigh both technical and financial safeguards for systemically important stablecoins.

Source: CoinDesk