An investigation suggests that North Korean agents may have contributed to the Cosmos ecosystem, particularly its Liquid Staking Module (LSM). Jacob Gadikian shared this finding on October 16, expressing concerns that the developers behind the LSM are among the world's most skilled crypto thieves. This revelation has raised alarms among investors, linking the developers to the notorious Lazarus Group, responsible for significant crypto hacks. Cosmos co-founder Ethan Buchman stated that the team was previously unaware of this connection and is now focused on conducting expedited audits. Melody Chan from Redecentralise highlighted fears of hidden vulnerabilities, such as backdoors within the code due to potential malicious involvement. While there is no definitive link to the Lazarus Group, the implications remain serious. In response, Informal Systems proposed a phased removal of the LSM, suggesting a new governance framework to enhance security. Two concurrent audits are planned, to be conducted by OtterSec, Binary Builders, and Zellic, to address any vulnerabilities before the transition.

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