<body><div><figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=0Q5Xrv_0w92oQTc00" alt="https://img.particlenews.com/image.php?url=0Q5Xrv_0w92oQTc00" width="768" height="403" ><figcaption>Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.</figcaption></figure>Cosmos developers are taking action to remove the Liquid Staking Module (LSM) from the Cosmos Hub after revelations linked its creation to North Korean agents.Earlier today, blockchain development company All in Bits (AiB) issued an emergency alert, highlighting significant security vulnerabilities within the LSM.Notably, news of the North Korean developers’ link to the project has negatively impacted the network’s token price, which fell by more than 2.5% in the last 24 hours to $4.44 as of press time.<h2>North Korea links</h2>According to AiB, a substantial portion of the LSM was developed by North Korean actors, raising critical concerns for the security of the Cosmos ecosystem.The company clarified that the LSM is not a standalone feature but an extension built on existing Cosmos staking modules. This design means that any vulnerability in the LSM could impact the entire staking system, potentially putting all staked ATOM tokens at risk.AiB further accused the leading developers of the LSM, Iqlusion and Zaki Manian, of lacking transparency. According to the company, the developers knew of the involvement of North Korean actors but chose not to disclose this information.AiB claimed that Zaki Manian became aware of these connections in March 2023. The company also alleged that Manian knew the developers were under investigation by the FBI but failed to inform the Cosmos community. The company wrote:<blockquote>“Despite possessing this crucial information, Zaki failed to conduct any further audits or a thorough review of the North Korean developers’ contributions before promoting the LSM for integration with the Cosmos Hub.”</blockquote>In addition to the North Korean link, AiB raised concerns over a critical LSM design flaw. This flaw reportedly allows users to avoid future slashing penalties, transferring the risk to other stakers. Despite being discovered during an audit, the developers did not address the issue, instead calling it an “intentional design goal.”<h2>Cosmos developers react</h2>In an Oct. 16 post on X (formerly Twitter), Cosmos developer Jacob Gadikian announced that the network’s developers have started tracking the steps required to remove the LSM from the Cosmos Hub.Gadikian also confirmed that specific branches of the Cosmos SDK repository, identified by “-lsm” suffixes, contain contributions from North Korean individuals linked to money laundering and developed under false identities.He stated:<blockquote>“The code in question should be entirely removed from the repository, or an extremely large, bold face warning should be put on the cosmos-sdk repository”</blockquote>Cosmos developers are now calling for a thorough audit of the LSM to disclose the full involvement of North Korean actors. The audit may also lead to the blacklisting of specific individuals and entities, including Zaki Manian, Iqlusion, and other key promoters of the module.Posted In: Cosmos, North Korea, DeFi, Featured, TechnologyOluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.Liam 'Akiba' WrightAlso known as "Akiba," Liam is a reporter, editor and podcast producer at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.Latest North Korea Stories<img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=3bdNgV_0w92oQTc00" alt="https://img.particlenews.com/image.php?url=3bdNgV_0w92oQTc00" width="501" height="263" >Disclaimer: Our writers' opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.</div></body>

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Cosmos developers race to dismantle North Korea-linked staking module amid security fears

Cosmos developers are taking action to remove the Liquid Staking Module (LSM) from the Cosmos Hub after revelations linked its creation to North Korean agents. Earlier today, blockchain development company All in Bits (AiB) issued an emergency alert, highlighting significant security vulnerabilities within the LSM. Notably, news of the North...