Sky is facing scrutiny for managing $756 million in USDC reserves using EOA.

According to Cointelegraph, Sky (formerly known as MakerDAO) is facing questions regarding the security and transparency of managing its $756 million $USDC reserves in the Lite Peg Stability Module (PSM) using externally owned accounts (EOA). Critics argue that this management approach could expose the funds to potential vulnerabilities or internal misuse. Sky co-founder Rune Christensen stated that the private keys required to reconstruct the multi-party computation (MPC) accounts were destroyed during the setup process to mitigate associated risks.