SteemConnect uses delegated key privileges. It does not store your keys but it changes your account settings to permit using your private keys without knowing them. That means, in the case of a hack of the developers account the hacker would have access to thousands of private active keys and could write a script that sends all liquid STEEM found in these accounts to an exchange in a few minutes. Nobody would be able to do anything about it.
SteemConnect uses delegated key privileges. It does not store your keys but it changes your account settings to permit using your private keys without knowing them. That means, in the case of a hack of the developers account the hacker would have access to thousands of private active keys and could write a script that sends all liquid STEEM found in these accounts to an exchange in a few minutes. Nobody would be able to do anything about it.