Cosmos Hub Faces Security Issues in Liquid Staking Module

According to Foresight News, All in Bits, a software development company within the Cosmos ecosystem, has identified significant security issues in the Cosmos Hub's Liquid Staking Module (LSM). The problems include the majority of LSM code being written by North Korean agents, LSM not being an independent module but a set of modifications to existing staking, allocation, and slashing modules, potentially affecting all staked ATOM, and the presence of a vulnerability that allows slashing avoidance. Additionally, the code changes have gone unaudited for 19 months, and there have been major misrepresentations by Zaki Manian and Iqlusion. The Interchain Foundation (ICF), Stride Labs, and Informal Systems have also been criticized for a lack of transparency. All in Bits recommends immediate fixes to the primary staking vulnerabilities in LSM, a comprehensive audit of LSM, full disclosure of North Korean involvement, blacklisting of ICF-related parties, and new audit and oversight protocols for ICF-funded projects. The development of LSM began in 2021, initiated by the Interchain Foundation and led by Iqlusion and Zaki Manian. As the project progressed, LSM became a major collaboration between Iqlusion and Stride Labs, with further contributions from Binary Builders and Informal Systems, integrating it into Gaia.