Internet Security

Cosmos co-founder warns of North Korean influence in Cosmos Hub’s LSM

Cosmos co-founder Jae Kwon alleges North Korean agents helped develop Cosmos Hub’s LSM code Kwon accuses Iqlusion’s Zaki Manian of hiding unresolved security risks Kwon urges an immediate audit and stricter oversight for future implementations Cosmos co-founder Jae Kwon has raised serious concerns regarding the integrity of the Cosmos Hub’s liquid staking module (LSM), alleging


Cosmos co-founder warns of North Korean influence in Cosmos Hub's LSM
  • Cosmos co-founder Jae Kwon alleges North Korean agents helped develop Cosmos Hub’s LSM code
  • Kwon accuses Iqlusion’s Zaki Manian of hiding unresolved security risks
  • Kwon urges an immediate audit and stricter oversight for future implementations

Cosmos co-founder Jae Kwon has raised serious concerns regarding the integrity of the Cosmos Hub’s liquid staking module (LSM), alleging that significant portions of its development involved individuals linked to North Korea.

In a statement released on Tuesday, Kwon accused Cosmos validator hosting firm Iqlusion and its leader, Zaki Manian, of “gross negligence” in allowing the module’s integration without adequate security vetting.

Cosmos Hub’s LSM developers North Korea agents

According to Kwon, development of the LSM began in August 2021 under the direction of Iqlusion and Manian, with contributions from developers Jun Kai and Sarawut Sanit.

Kwon alleges that these developers were later identified as North Korean agents and had provided a substantial portion of the module’s code.

Despite awareness of their connections since March 2023, Kwon claimed Manian withheld this information and failed to disclose several unresolved security risks associated with the LSM.

The controversy gained traction following Manian’s social media acknowledgement that he had known about the North Korean-linked developers for months. However, instead of taking preventive actions, such as conducting an additional audit or informing the Cosmos community, Kwon stated that Manian continued to assert the module was “ready to be deployed.”

Kwon accused Manian of a “profound breach of trust” for prioritizing deployment over community safety.

Critical vulnerabilities in the LSM

Security issues had already surfaced during a 2022 audit that revealed critical vulnerabilities in the LSM. These vulnerabilities were reportedly addressed by the same North Korean-linked developers.

Kwon suggested that despite Manian’s claim of rewriting the LSM code before deployment, significant risks persisted, especially since the module was not a standalone feature, but a set of modifications built atop existing Cosmos staking modules.

This could potentially expose all staked ATOM tokens to security threats.

Kwon has called on the Cosmos governance community to initiate a comprehensive audit of the LSM immediately. Additionally, he urged the Interchain Foundation to impose stricter auditing standards and create an oversight framework to ensure the security of future Cosmos implementations.

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Over 250 arrested as protests against alleged Lahore rape spread to Rawalpindi

At least 250 violent protesters were arrested in Rawalpindi as police used tear gas to disperse students demonstrating against the alleged rape of a Lahore student. Last week, reports related to the alleged rape of a private college student went viral on social media, prompting the police to arrest a security guard at the college

At least 250 violent protesters were arrested in Rawalpindi as police used tear gas to disperse students demonstrating against the alleged rape of a Lahore student.
Last week, reports related to the alleged rape of a private college student went viral on social media, prompting the police to arrest a security guard at the college who was allegedly involved in the incident…
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Suspect held for allegedly raping college student in Lahore: police

A security guard who allegedly raped a student at a private college in Lahore has been arrested after news related to the incident went viral on social media, police said on Sunday. A statement from the spokesperson for Deputy Inspector General (Operations) Faisal Karman said a special team was formed to apprehend the suspect and

A security guard who allegedly raped a student at a private college in Lahore has been arrested after news related to the incident went viral on social media, police said on Sunday.
A statement from the spokesperson for Deputy Inspector General (Operations) Faisal Karman said a special team was formed to apprehend the suspect and probe the matter further as soon as unconfirmed reports about the incident began circulating on social media…
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Robinhood Crypto Launches Crypto Transfers for European Users

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Robinhood Crypto has introduced a major new feature for European users, allowing them to deposit and withdraw over 20 different cryptocurrencies. The new crypto transfer service includes a limited-time 1% deposit match. With this launch, the platform also reinforces its focus on self-custody, security, and decentralized finance (defi) accessibility…
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Taiwan’s financial regulator permits professional investors to invest in digital asset ETFs

The FSC has restricted access to the virtual asset ETFs to professional institutional investors Security companies will need to establish a “virtual asset ETF suitability system” Taiwan’s financial regulator is allowing professional investors to invest in “foreign virtual asset” exchange-traded funds (ETFs) through a re-entrustment service. In an announcement, the Financial Supervisory Commission (FSC) explained


  • The FSC has restricted access to the virtual asset ETFs to professional institutional investors
  • Security companies will need to establish a “virtual asset ETF suitability system”

Taiwan’s financial regulator is allowing professional investors to invest in “foreign virtual asset” exchange-traded funds (ETFs) through a re-entrustment service.

In an announcement, the Financial Supervisory Commission (FSC) explained that the move would give investors a “variety of product choices and enhance the momentum of China’s securities firms’ re-entrustment of business.”

As a result of the high risks involved in crypto-related ETFs, the FSC has restricted this to professional investors. These include professional institutional investors, high-net-worth professionals, and high-asset clients.

Additionally, the FSC noted that security companies will need to establish a “virtual asset ETF suitability system, which needs to be approved by the board of directors, to determine a client’s professional knowledge of virtual assets before investing in an ETF.

The security companies will also need to provide product information relating to the ETF before a client makes their first purchase. The security firms will also provide regular training and education on virtual assets.

The FSC said it will “continue to pay attention to the handlings of re-entrusted business by securities firms and continue to improve relevant regulations to ensure the rights and interests of investors and enhance the competitiveness of securities firms.”

Cautious approach

Taiwan has, traditionally, taken a cautious stance toward the cryptocurrency market.

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Following that, last October, the Taiwan government introduced the Virtual Asset Management Bill.

Focusing on customer protection, regulatory obligations, and industry self-regulation, the bill provides guidelines for virtual asset service providers (VASPs) while building industry growth.

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