MALICIOUS VSX EXTENSION "SLEEPYDUCK" USES ETHEREUM TO KEEP ITS COMMAND SERVER ALIVE

Summary from the TLDR InfoSec newsletter

The SleepyDuck malware, disguised as a legitimate Solidity extension for Visual Studio Code, uses an innovative Ethereum smart contract-based command and control infrastructure to maintain persistent access even if primary servers are taken down. The malware activates when opening .sol files, connects to Ethereum RPC providers to communicate with contract address 0xDAfb81732db454DA238e9cFC9A9Fe5fb8e34c465, and polls for commands every 30 seconds while collecting system information and providing remote access capabilities. Security professionals should implement strict extension vetting processes, monitor network traffic for Ethereum RPC connections originating from development environments, and establish policies that require extensions to be sourced only from verified publishers with established reputations.