The realization could put the blockchain ecosystem at risk of being compromised
Recent investigations have raised concerns about potential North Korean involvement in the development of a key component of the Cosmos blockchain ecosystem. It has been suggested that North Korean developers may have contributed to the Liquid Staking Module (LSM) within Cosmos, sparking fears about the integrity of the platform. This revelation, first shared by Cosmos developer Jacob Gadikian, has caught the attention of both the FBI and the broader crypto community.
Hey everyone remember atomic wallet?
Yeah, rekt by the same group that built the liquidity staking module.
It isn’t about their geography or ethnicity. The people who built the lsm are the world’s most skilled and prolific crypto thieves.
So now we remove the lsm. pic.twitter.com/1sxdvnRtk7
— Jacob Gadikian 🦄x⚗️ (@gadikian) October 16, 2024
The LSM is a crucial feature that allows for the staking of crypto assets in the Cosmos ecosystem, but concerns have emerged about whether this module may contain vulnerabilities deliberately embedded by malicious actors. The fear is that developers with links to North Korea, particularly those associated with the infamous Lazarus Group, could have created backdoors or other exploitable weaknesses in the code.
The Lazarus Group, a cybercrime organization tied to the North Korean government, is known for orchestrating some of the largest cryptocurrency heists in recent years, including the $600 million hack of the Ronin bridge.
Cosmos co-founder Ethan Buchman has acknowledged the issue, stating that the project team was unaware of any North Korean involvement in the LSM. The community has since moved swiftly to address the potential risks, with multiple security audits already planned. These audits, led by firms such as OtterSec and Zellic, are expected to thoroughly examine the LSM for any hidden vulnerabilities.
The Cosmos ecosystem is also taking steps to phase out the LSM altogether, potentially replacing it with a new framework to better protect the platform’s security and governance. This move is expected to enhance the safety of user funds and the overall trust in the Cosmos blockchain, as it works to mitigate any potential risks associated with the North Korean connection.
