Threat From a Malicious Extension

Cole explained that he had installed a Cursor AI extension named “contractshark.solidity-lang,” which appeared trustworthy with a professional icon, detailed description, and over 54,000 downloads. However, the extension read his .env file and transmitted the private key to the attacker’s server. This gave the attacker three days of access to his hot wallet before draining the funds on Sunday.

“In over 10 years, I have never lost a single wei to hackers. Then I rushed to deliver a contract last week, and this happened,” Cole said. He noted that the loss was limited to only a few hundred dollars worth of Ether, as he keeps his main holdings on hardware wallets and uses small, project-specific hot wallets for testing.

I've been in crypto for over 10 years and I’ve Never been hacked. Perfect OpSec record.

Yesterday, my wallet was drained by a malicious @cursor_ai extension for the first time.

If it can happen to me, it can happen to you. Here’s a full breakdown.

— zak.eth (@0xzak) August 12, 2025

Wallet Drainers on the Rise

Wallet drainers—malware designed to steal digital assets—are an increasing threat to cryptocurrency investors. In September 2024, malware disguised as the WalletConnect Protocol remained live on the Google Play Store for over five months, stealing more than $70,000 in digital assets.

Hakan Unal, senior security operations lead at blockchain security firm Cyvers, warned that fake publishers and typosquatting techniques are being used to steal developers’ private keys. He advises developers to carefully vet extensions, avoid storing sensitive data in plain text or .env files, use hardware wallets, and develop in isolated environments.

Attacks Can Now Be Rented

According to an April 2025 report from crypto security firm AMLBot, these types of wallet drainer tools are now offered under a SaaS model. Scammers can rent them for as little as 100 USDT.

These developments show that security has become more critical than ever for both developers and investors in the crypto ecosystem.

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