- AiB warns of potential security concerns in Cosmos’ LSM for ATOM.
- Immediate audits and solutions are required to restore security trust.
Cosmos (ATOM) is being evaluated for potential security issues associated with its Liquid Staking Module (LSM), as reported by web3 builder All in Bits (AiB). The organization raised concerns about the Liquid Staking Module (LSM) used by investors to stake ATOM. They noted significant flaws that could pose risks to the Cosmos ecosystem.
According to AiB’s announcement on X, acute vulnerabilities have been found in the Cosmos Hub’s LSM. One of the most serious concerns raised is that the LSM’s code was apparently created by North Korean agents. This disclosure comes amid continuing fear and concerns about this group’s infiltrations, forcing a closer look into the code’s origins.
AiB noted that the LSM’s origins are questionable, raising concerns about its reliability. They also emphasized that the LSM is not a standalone module but is connected to other staking and distribution processes within the Cosmos ecosystem. This interconnection raises red flags since a security breach in the LSM could compromise the entire ecosystem. AiB also pointed out that two project participants misrepresented critical facts about the LSM’s security.
Furthermore, All in Bits criticized other companies engaged, including Stride Labs and Informal Systems, for their lack of transparency regarding the project’s security procedures. The builder also revealed flaws in the cutting process that let validators avoid penalties, combining security issues.
Recommended for Cosmos Hub Security
In light of these affecting revelations, AiB has suggested a series of activities for the Cosmos Hub. First, they call for a quick fix to address the LSM’s serious vulnerabilities. Furthermore, an audit of all systems in the Cosmos ecosystem is required. Although the LSM cleared a 19-month audit before installation, AiB found that many codes remained unchecked, allowing the possibility of future attacks.
The protocol developer also highlights that all parties involved in security issues bear adequate repercussions for their actions. AiB’s thorough release underlined the need for transparency and trust in the Cosmos ecosystem.
As all of this occurs ATOM is currently trading at $4.30, and it may be prepared to reverse its recent gains this week, perhaps falling to a support level at $4.039, the upper boundary of a Fair Value Gap (FVG) on the ATOM/USDT daily chart. This scenario predicts a nearly 10% reduction in the token’s price if the negative trend continues.
Security breaches have been more regular in the cryptocurrency field, with recent attacks impacting projects such as Pendle and Polygon, highlighting the importance of increased attention and effective security measures.
