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All in Bits (AiB), the builder of the Cosmos ecosystem, has issued an emergency alert regarding serious security risks in the Cosmos Hub's Liquid Staking Module (LSM). The alert revealed that most of the LSM code was written by North Korean developers. Development of the LSM began in August 2021, led by Iqlusion and Zaki Manian. A security audit by Oak Security in July 2022 uncovered critical vulnerabilities. For 16 months, contributions from North Korean developers were integrated without proper vetting. Cosmos co-founder Jae Kwon has blamed Iqlusion's Zaki Manian for failing to properly vet these contributions. Cosmos developers are now racing to dismantle the compromised module amid these security fears.




