The cause of the serious security issues in the Cosmos Hub liquidity staking module was revealed, including the involvement of North Korean agents in most of the code writing

PANews reported on October 16 that All in Bits, a Cosmos ecosystem software development company, said it had discovered the reasons why the Cosmos Hub's Liquidity Staking Module (LSM) had serious security issues, 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; and a lack of transparency in ICF, Stride Labs, and informal systems.

All in Bits recommends an immediate fix for the LSM’s major staking vulnerability; an immediate, comprehensive LSM audit; a full disclosure timeline of investigations involving North Korean agents; a blacklist of ICF-related parties; and a new audit and oversight protocol for ICF-funded projects.