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Malicious VSX Extension “SleepyDuck” Uses Ethereum to Keep Its Command Server Alive

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November 3, 2025
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Malicious VSX Extension “SleepyDuck” Uses Ethereum to Keep Its Command Server Alive
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Nov 03, 2025Ravie LakshmananCryptocurrency / Risk Intelligence

Cybersecurity researchers have flagged a brand new malicious extension within the Open VSX registry that harbors a distant entry trojan known as SleepyDuck.

In accordance to Safe Annex’s John Tuckner, the extension in query, juan-bianco.solidity-vlang (model 0.0.7), was first revealed on October 31, 2025, as a totally benign library that was subsequently up to date to model 0.0.8 on November 1 to embody new malicious capabilities after reaching 14,000 downloads.

“The malware contains sandbox evasion strategies and makes use of an Ethereum contract to replace its command and management tackle in case the unique tackle is taken down,” Tuckner added.

Campaigns distributing rogue extensions focusing on Solidity builders have been repeatedly detected throughout each the Visible Studio Extension Market and Open VSX. In July 2025, Kaspersky disclosed {that a} Russian developer misplaced $500,000 in cryptocurrency property after putting in one such extension by Cursor.

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Within the newest occasion detected by the enterprise extension safety agency, the malware is triggered when a brand new code editor window is opened or a .sol file is chosen.

Particularly, it is configured to discover the quickest Ethereum Distant Process Name (RPC) supplier to join to so as to receive entry to the blockchain, initialize contact with a distant server at “sleepyduck[.]xyz” (therefore the identify) through the contract tackle “0xDAfb81732db454DA238e9cFC9A9Fe5fb8e34c465,” and kicks off a polling loop that checks for brand new instructions to be executed on the host each 30 seconds.

It is also able to gathering system info, akin to hostname, username, MAC tackle, and timezone, and exfiltrating the main points to the server. Within the occasion the area is seized or taken down, the malware has built-in fallback controls to attain out to a predefined record of Ethereum RPC addresses to extract the contract info that may maintain the server particulars.

What’s extra, the extension is provided to attain a brand new configuration from the contract tackle to set a brand new server, in addition to execute an emergency command to all endpoints within the occasion that one thing sudden happens. The contract was created on October 31, 2025, with the threat actor updating the server particulars from “localhost:8080” to “sleepyduck[.]xyz” over the course of 4 transactions.

It isn’t clear if the obtain counts had been artificially inflated by the risk actors to enhance the relevance of the extension in search outcomes – a tactic typically adopted to enhance the recognition in order to trick unsuspecting builders into putting in a malicious library.

The event comes as the corporate additionally disclosed particulars of one other set of 5 extensions, this time revealed to the VS Code Extension Market by a consumer named “developmentinc,” together with a Pokémon-themed library that downloads a batch script miner from an exterior server (“mock1[.]su:443”) as quickly because it’s put in or enabled, and runs the miner utilizing “cmd.exe.”

The script file, moreover relaunching itself with administrator privileges utilizing PowerShell and configuring Microsoft Defender Antivirus exclusions by including each drive letter from C: by Z:, downloads a Monero mining executable from “mock1[.]su” and runs it.

CIS Build Kits

The extensions uploaded by the risk actor, now now not out there for obtain, are listed under –

  • developmentinc.cfx-lua-vs
  • developmentinc.pokemon
  • developmentinc.torizon-vs
  • developmentinc.minecraftsnippets
  • developmentinc.kombai-vs

Customers are suggested to train warning when it comes to downloading extensions, and guarantee that they’re from trusted publishers. Microsoft, for its half, introduced again in June that it is instituting periodic marketplace-wide scans to defend customers towards malware. Each eliminated extension from the official market might be seen from the RemovedPackages page on GitHub.



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