Cosmos developers race to dismantle North Korea-linked staking module amid security fears
Cosmos developers are removing the Liquid Staking Module (LSM) from the Cosmos Hub due to its links to North Korean agents and significant security vulnerabilities. An emergency alert from All in Bits (AiB) revealed that a substantial portion of the LSM was developed by North Korean actors, raising security concerns for the Cosmos ecosystem. The network's token price fell over 2.5% to $4.44 following these revelations. AiB accused leading developers, including Zaki Manian, of lacking transparency and failing to disclose known connections to North Korean developers under FBI investigation. A critical design flaw in the LSM allows users to avoid slashing penalties, transferring risks to other stakers. Cosmos developers are tracking steps to remove the LSM and are calling for a thorough audit to disclose all involvement of North Korean actors, potentially leading to blacklisting of key individuals.
