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An investigation suggests that North Korean developers may have contributed to the Cosmos ecosystem, creating security concerns and attracting FBI attention. Developers fear these creators could be part of the Lazarus Group, known for large crypto heists. Cosmos’ Liquid Staking Module (LSM), where the involvement is suspected, is under scrutiny, and there are plans for more reliance on this system. However, the founders of Cosmos were unaware of any North Korean contributions. Two separate audits are planned to detect system vulnerabilities. Some propose replacing Cosmos’ LSM with a safer structure.

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A recent investigation claims that some parts of the Cosmos ecosystem may have been created by North Korean developers, which has reportedly caught the FBI’s attention. The Liquid Staking Module (LSM) of Cosmos is apparently the area that might have had input from this source.

Jacob Gadikian, a developer within the Cosmos ecosystem, shared the investigation’s findings online and claimed, “The folks who built the LSM are some of the slickest and most famous crypto thieves in the world.”

Investors are naturally a bit worried following the news. Some fear that these developers could be part of the notorious Lazarus Group, a group of cyber crooks with suspected ties to the North Korean government famously known for massive crypto heists like the $600 million Ronin bridge breach.

Ethan Buchman, one of the founders of Cosmos, stated in an online post that he and others working on Cosmos had no idea about any North Korean contributions to the LSM. They’re currently trying to be less reliant on the LSM because of the revelation.

Melody Chan, a research lead at Redecentralise, has raised concerns that there could be hidden issues with Cosmos’ LSM due to the possible involvement of harmful North Korean actors. There’s fear that secret backdoors could be added into the ecosystem’s code which would make it vulnerable to hacking. Comprehensive code audits are now required more than ever.

Lazarus Group, which traces back to 2009, is one of the most infamous crypto thief groups and has reportedly stolen over $3 billion in crypto assets by 2023.

However, Anndy Lian, an author and an intergovernmental blockchain expert, stated that just because there is a North Korean connection doesn’t mean the developers are linked with the Lazarus Group. Technically, allegations about any ties with the Lazarus Group are still unproven.

To ensure there are no vulnerabilities, two separate audits will look into the matter. The first one is scheduled for next week and the second one is planned for mid-November.

In response to the issues, some individuals suggesting a shift away from Cosmos’ LSM and replace it with a new framework. They claim that this new structure would be more advantageous for all involved parties.

More information is awaited regarding future developments on this situation.

Source: Cointelegraph