Cosmos Co-Founder Blames Iqlusion Over North Korea-Linked Security Risks

Cosmos co-founder Jae Kwon on Tuesday raised concerns about the development and security of Cosmos Hub's liquid staking module, following reports linking Iqlusion — the company behind the module — to North Korean agents.

"The community should be aware of the risks involved and take appropriate measures to protect their funds," Kwon wrote in a blog post.

The U.S. is calling for a reduced five-year prison sentence for Ilya Lichtenstein, who was found guilty of conspiring to launder cryptocurrency stolen in the 2016 Bitfinex hack.

Prosecutors initially sought a 25-year sentence for Lichtenstein, but in a sentencing memo filed on Monday, they asked for the sentence to be cut to five years, reflecting his cooperation in the case and assistance in other crypto-related criminal investigations.

A new report by Andreessen Horowitz-backed firm a16z crypto shows that cryptocurrency activity and usage reached an all-time high in 2023, despite the bear market and market downturns.

The State of Crypto 2023 report, released on Wednesday, found that crypto activity surged by 39% last year, reaching an index value of 139.

The report also found that emerging markets such as India, Brazil and Turkey drove the majority of crypto activity, accounting for 75% of the total activity.

"This is largely due to the fact that these markets have a younger population, higher mobile penetration rates and a greater need for financial services," the report stated.

Meanwhile, a group of U.S. senators have introduced a bill that would require the Internal Revenue Service to study the tax implications of cryptocurrency donations.

The bill, introduced by Senators Ron Wyden (D-Ore.), Cynthia Lummis (R-Wyo.) and Steve Daines (R-Mont.), would direct the IRS to conduct a study on the tax treatment of cryptocurrency donations and report its findings to Congress within 180 days.

"This legislation will help ensure that the tax code is keeping up with the times and that Americans are able to fully participate in the digital economy," Wyden said in a statement.