How secure is using TOR in Lightning Network? In following paper (Link to the paper) we read:


  "combining Tor and Bitcoin creates an attack vector for the
  deterministic and stealthy man-in-the-middle attacks. A low-resource
  attacker can gain full control of information flows between all users
  who chose to us Bitcoin over Tor. In particular the attacker can link
  together user’s transactions regardless of pseudonyms used, control
  which Bitcoin blocks and transactions are relayed to the user and can
  delay or discard user’s transactions and blocks."


On the other hand, in this answer(Link to the answer) we read:


  "in order to maximize your privacy you should run your lightning node
  on TOR even though the routing of payments is a source based
  Onionrouting similar to TOR."



According to the paper that is addressing an attack on the Bitcoin, How secure is using TOR in Lightning Network ?
Does use of TOR in LN increases privacy by hiding the IP address WITHOUT increasing the the proposed man-in-the-middle attack in the paper ?
The paper you link to when used as advice rather than a scholarly investigation into the tradeoffs of different choices is outright bad advice.

The attacks they give are largely generic and have little to do with tor itself, while use of tor provides non-trivial protection against many other vectors, and if used consistently and exclusively at least prevents linking the users network identifiers with their activity. Almost every security decision is an exercise in tradeoffs when it comes to advice you cannot just consider the risks of one option while pretending the alternatives are riskless.

Moreover, its not uncommon to see this article breathlessly promoted on the same pages that recommend users use lite wallets that simply send all their addresses to remote hosts-- effectively always operating under the worst case possibility the article suggests. If using tor is a bad idea then using, say electrum, is "holy crap why would you ever do that?!" -- yet you don't see that level of promotion against using electrum or similar.

Given the recent rise in promoting it I am concerned that some parties might be sharing it with the express intention of undermining user privacy.