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The Contractshark in Cursor: A Cautionary Tale

Ethereum dev Zak Cole had his wallet drained by a malicious Cursor extension. Here's what to watch out for.
The Contractshark in Cursor: A Cautionary Tale
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Devs and vibe coders in crypto just got a wake-up call after a novel security breach hit Zak Cole of the Ethereum Community Foundation. Cole, who’s been in crypto for over a decade with a spotless OpSec record, had his wallet drained last week after installing what looked like a legit Solidity extension in Cursor, the popular AI code editor.

What's spooky here is this vector bypasses OS malware defenses entirely. It was just JavaScript combined with user permissions. Plus, .env files are written in plaintext. Anything on your machine, from AI coding assistants to npm packages, can read it.

Time to batten down the hatches, then. Cole recommends getting private keys out of .env files, moving anything valuable to hardware wallets, and isolating your dev enviroments. Treat every extension install like it’s a potential breach.

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William M. Peaster

Written by William M. Peaster

892 Articles View all      

William M. Peaster, Senior Writer, has been with Bankless since January 2021. Immersed in Ethereum since 2017, he writes the Metaversal newsletter on the onchain frontier, covering everything from AI projects to crypto games, as the team’s lead NFT analyst. With a background in creative writing, he writes fiction and publishes art on Ethereum in his free time.

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