Cosmos Hub’s Liquid Staking Module Under Scrutiny Due to North Korea Ties

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Concerns over the security of the Cosmos Hub’s Liquid Staking Module (LSM) have intensified following revelations that North Korean developers were allegedly involved in its creation.

A detailed report by blockchain development firm All in Bits (AiB) unveiled a series of critical missteps, potential security risks, and severe lapses in transparency by those leading the LSM’s development.

The allegations center on Zaki Manian, a prominent figure in the Cosmos community and head of Iqlusion, who reportedly became aware of North Korean involvement in the LSM’s development as early as March 2023.

URGENT ALERT: AiB has uncovered cause for serious security concerns with Cosmos Hub's Liquid Staking Module (LSM).

Timeline:
* Aug 2021: LSM development begins, led by Iqlusion & Zaki Manian
* Jul 2022: Oak Security audit reveals critical vulnerabilities; North Korean devs…

The LSM’s development began in August 2021. It was led by Iqlusion and supported by other players in the Cosmos ecosystem, such as Stride Labs and Informal Systems.

The LSM was designed to enhance liquidity for staked ATOM tokens, allowing users to convert them into liquid staked assets.

However, AiB’s investigation has revealed that North Korean developers wrote a substantial portion of the LSM’s code.

In July 2022, Oak Security audited the LSM and uncovered severe vulnerabilities, including mechanisms that would allow stakers to evade slashing penalties—a fundamental aspect of ensuring the security of proof-of-stake blockchains.

Rather than addressing these concerns with