According to Cointelegraph, Sky (formerly known as MakerDAO) is facing security and transparency concerns for managing $756 million USDC reserves in its Lite Peg Stability Module (PSM) using externally owned accounts (EOA). Critics argue that this management approach could make funds vulnerable to potential exploits or internal abuse. 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.