Cosmos Ecosystem Development Company All in Bits: Cosmos Hub’s Liquidity Staking Module Has Serious Security Issues

BlockBeats reported that on October 16, All in Bits, a Cosmos ecosystem software development company, posted on Github that it had discovered the reasons for the serious security issues in the Cosmos Hub's Liquidity Staking Module (LSM), including that most of the LSM code was written by North Korean agents; LSM is not an independent module, but a set of modifications to the existing staking, allocation, and slashing modules, which may affect all staked ATOMs; vulnerabilities that allow slashing circumvention still exist; 19 months of unaudited code changes; major misrepresentations by Zaki Manian and Iqlusion; lack of transparency in ICF, Stride Labs, and informal systems.

All in Bits recommends an immediate fix for the major staking vulnerabilities in LSM; an immediate and comprehensive LSM audit; a full disclosure of the timeline for North Korea's involvement in the investigation; an ICF-related party blacklist; and a new audit and oversight protocol for ICF-funded projects.

All in Bits recommends an immediate fix for the LSM's major staking vulnerabilities; an immediate and comprehensive LSM audit; a full disclosure of the timeline for North Korea's involvement in the investigation; an ICF-related party blacklist; and a new audit and oversight protocol for ICF-funded projects.

BlockBeats previously reported that more than a dozen cryptocurrency companies have unknowingly hired IT workers from the Democratic People’s Republic of Korea (DPRK), including Cosmos Hub. These workers used fake IDs, successfully passed interviews, passed background checks, and provided real work experience. Blockchain developer Zaki Manian said he accidentally hired two North Korean IT workers to help develop the Cosmos Hub blockchain in 2021.