Hacken Report Reveals Security Risks in USDT Control Structure

A recent report by blockchain security firm Hacken has highlighted significant security vulnerabilities in the control structure of Tether's USDT stablecoin. The assessment indicates that nearly half of the circulating USDT, valued at approximately $91.3 billion on the Tron network, is governed by a 2-of-3 multi-signature contract. This contract lacks essential features such as built-in delays, cancellation processes, or reliable revocation mechanisms, which could allow attackers to compromise two signature keys and gain control over the contract.

Hacken's findings also reveal that Tether employs a consistent set of six signature keys across three different blockchain networks: Ethereum, Avalanche, and Celo. This practice raises concerns about the potential for cross-chain vulnerabilities. The report further notes that once signers authorize a transaction, the contract can mint an unlimited number of tokens without any proof of bank reserves, as there are no automatic checks in place for reserve verification or a cap on token minting.

In a related development, stablecoin rating agency Bluechip has upgraded Tether's company rating from D to C, following an audit by KPMG that confirmed Tether's reserves exceeded its liabilities by $6.8 billion as of December 31, 2025. This upgrade marks the first application of Bluechip's expanded SMIDGE methodology, which now includes Hacken's technical risk analysis. However, Hacken assigned USDT a cybersecurity score of just 3.3 out of 10, underscoring the ongoing concerns regarding its smart contract security.

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Source: KLEA News