A two-key breach could hand control of $91 billion in USDT to hackers, report finds
A new security report has found that Tether's USDT stablecoin — currently holding approximately $91 billion in circulating supply — could be compromised by a two-key breach, according to findings published by blockchain security firm Hakken. The report identifies critical gaps in Tether's key management infrastructure, suggesting that access to just two cryptographic keys could grant an attacker full control over the protocol's administrative functions, including the ability to freeze or mint tokens.
The findings come alongside a BlueChip rating upgrade for Tether, a notable recognition given that BlueChip is considered one of the more rigorous stablecoin evaluation frameworks in the industry. Despite the upgraded rating, Hakken's security audit flagged the key management vulnerabilities as a significant unresolved risk, highlighting a disconnect between operational performance metrics and underlying technical security posture.
The implications for the broader market are considerable. USDT remains the world's largest stablecoin by market capitalization and serves as a primary liquidity layer across centralized and decentralized exchanges globally. A successful exploit of the nature described could trigger cascading instability across crypto markets, affecting trading pairs, lending protocols, and cross-border payment systems that rely on USDT's stability.
Tether has not yet issued a formal public response to the specific security concerns raised in Hakken's report. Market observers will be watching whether the company moves to address the identified key management gaps in the near term.
Source: CoinDesk
