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Cybercriminals Use Ethereum Smart Contracts in Malicious npm Packages

Cybercriminals Use Ethereum Smart Contracts in Malicious npm Packages

  • Cybercriminals exploit Ethereum smart contracts to bypass npm security measures.
  • Fraudulent GitHub repositories deceive developers into downloading malicious npm packages.
  • Increasing sophistication of open-source attacks highlights growing blockchain security threats.

Cybercriminals have recently developed a new method for bypassing detection in malicious npm packages by utilizing Ethereum smart contracts. As revealed by software security firm ReversingLabs, this is a drastic change in the way threat actors use open-source tools to attack developers.


The attack also uses smart contracts to conceal command-and-control (C2) instructions, which complicates the detection and suppression of the threat by security systems.


As part of the campaign, two npm packages were created, one called colortoolsv2 and the other called mimetoolib2. These malicious packages fetch C2 URLs of Ethereum on-chain contracts, which redirect the system to a second-stage downloader.


Rather than placing links in the package code itself, the attackers invoke an obfuscated script that requests the Ethereum contract to tell it where the following payload is. This approach makes it harder to detect and eliminate, a new and daunting strategy for security specialists.


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Fake Repositories and Developer Trust Exploited

To further their efforts, cybercriminals used fraudulent, crypto-themed GitHub repositories to gain the trust of developers. These repositories looked valid, with overrated stars and autogenerated commit histories, inviting developers to push the malicious npm packages to their projects. Once integrated, the malicious code might run undetected, thus exposing sensitive data and assets.


ReversingLabs’ probe discovered that the campaign was a subset of an even bigger scheme to infect npm and GitHub with malicious repositories. These were often presented as crypto trading bots or other useful tools, misleading developers into downloading harmful dependencies.


A Growing Trend in Open-Source Attacks

This attack is part of a broader trend of increasing sophistication in cyberattacks targeting open-source platforms like npm and GitHub. Past campaigns used tricks such as artificial repositories with false activity to fool developers.


Threat is a bare reality of the increasing use of blockchain in malicious code. It emphasizes that developers should be on guard against emerging tactics that are used to compromise open-source trust. While these malicious packages have been removed from npm, the evolving nature of these attacks calls for continued vigilance to protect the integrity of the open-source ecosystem.


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