Cybersecurity researchers have uncovered a new technique that hackers are using to distribute malware by leveraging Ethereum smart contracts. The method, recently exposed by ReversingLabs, highlights how attackers are adapting blockchain technology to bypass conventional security systems and target developers worldwide.
Malware Hidden in Ethereum Smart Contracts
The attack was discovered in two Node Package Manager (NPM) libraries—“colortoolsv2” and “mimelib2”—that appeared to be harmless open-source tools. According to Lucija Valentić, a researcher at ReversingLabs, the malicious packages used Ethereum smart contracts to conceal command-and-control URLs.
Rather than hosting malware directly, the packages acted as downloaders. Once installed, they connected to the Ethereum blockchain to retrieve hidden links, which then delivered secondary malware to infected devices. Because blockchain traffic appears legitimate, this technique made detection significantly more difficult.
Why This Technique Matters
While malicious code targeting Ethereum smart contracts has surfaced before, this specific approach is new. Traditionally, hackers embedded harmful payloads directly within NPM packages or hosted them on external servers. By using smart contracts as an intermediary layer, attackers created a stealthier attack vector that complicates detection for automated security scans.
Valentić explained that this shift reflects “the fast evolution of detection evasion strategies by malicious actors who are increasingly exploiting open-source repositories.”
A Larger Social Engineering Campaign
The malware packages were not isolated incidents. They were part of a broader deception effort targeting cryptocurrency users and developers.
Threat actors created fake GitHub repositories that appeared to host cryptocurrency trading bots. To make these repositories appear legitimate, attackers used sophisticated tactics:
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Fabricated commit histories.
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Multiple fake maintainer accounts to simulate active development.
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Fake user accounts to “watch” the projects.
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Professional documentation and polished descriptions.
These efforts were designed to lure developers into downloading and trusting malicious code.
Not Limited to Ethereum
While this latest case involved Ethereum smart contracts, hackers have also targeted other blockchain ecosystems. In April, researchers found a fake Solana trading bot on GitHub that delivered hidden malware designed to steal crypto wallet credentials. Other campaigns have even targeted Bitcoin-related libraries, such as “Bitcoinlib,” an open-source Python package intended for blockchain developers.
This highlights that attackers are not limited to one network but are testing multiple chains and platforms to maximize their reach.
The Rising Threat of Crypto-Focused Malware
In 2024 alone, cybersecurity researchers documented at least 23 crypto-related malicious campaigns across open-source repositories. This latest incident demonstrates how the attacks are becoming more advanced, combining blockchain technology with traditional social engineering tactics to evade detection.
Valentić stressed that developers and crypto users should exercise extreme caution when installing packages from open-source repositories, particularly those related to cryptocurrency trading or financial tools. Even packages that appear legitimate and well-documented could be part of elaborate scams.
Protecting Against These Attacks
Experts recommend several defensive measures to reduce the risk of falling victim to these evolving threats:
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Carefully verify the authenticity of open-source libraries before installation.
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Check whether projects have trusted maintainers with long-standing reputations.
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Use security tools capable of monitoring unusual blockchain queries in addition to traditional malware scans.
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Stay updated with reports from cybersecurity firms tracking new attack vectors.
The discovery of malware concealed within Ethereum smart contracts signals a new stage in the arms race between hackers and security systems. As attackers continue to innovate, developers and crypto users must remain vigilant against increasingly sophisticated methods designed to bypass trust mechanisms in open-source and blockchain ecosystems.
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