★ Rescue/emergencyWithdraw without timelock

USDD (Decentralized USD)'s assessment for RD-F-041 — scored red on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.

Evidence summary #

[STAR CRITICAL] August 2024 unilateral removal of ~12,000 BTC (~$726M) from USDD reserves without DAO vote demonstrates real-world rescue/withdrawal without timelock. No timelock on reserve movements confirmed. Canonical Ethereum ERC-20 wards allows burn/mint in single tx with no delay. Confirmed evidence of unilateral large-asset movement — contract-independent.

Sources #

URL
Decrypt — Justin Sun's USDD Stablecoin Loses Bitcoin BackingDecrypt — USDD loses Bitcoin backing (Aug 2024)retrieved 2026-05-17
URL
Justin Sun's USDD removes 12,000 BTC without DAO approvalProtos — Justin Sun USDD removes 12,000 BTC without DAO approval (2024-08-21)retrieved 2026-05-17

Methodology #

Determine whether a `rescue(…)` or `emergencyWithdraw(…)` function exists callable by admin without a timelock delay on execution.

See the full factor methodology and distribution across all protocols →

rubric_version v1.7.0 protocol usdd factor RD-F-041 score red collected_at 2026-05-17 11:34:18