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Security researchers reported malicious Visual Studio Code extensions being used as a software supply-chain vector to compromise developer workstations. One campaign impersonated a viral AI coding assistant (“ClawdBot”) via a fake extension (“ClawdBot Agent”) that appeared legitimate and even functioned as an AI assistant by integrating real APIs (e.g., OpenAI/Anthropic/Google), while silently dropping malware on Windows at VS Code startup. The observed payload delivery used camouflage filenames such as Lightshot.exe (and references to Lightshot.dll) and an Electron-style bundle name Code.exe, indicating an effort to blend into common developer tooling and evolve the dropper over time.
A separate finding described an Open VSX extension masquerading as a popular Angular Language Service for VS Code, which bundled legitimate dependencies (e.g., @angular/language-service and typescript) alongside a malicious loader that activates when users open HTML or TypeScript files (onLanguage:html, onLanguage:typescript). The loader decrypts an embedded payload using AES-256-CBC (Node.js crypto), with a hardcoded IV and a large hex-encoded ciphertext, then delays and executes the decrypted code—behavior consistent with staged malware delivery and potential worm-like propagation through widely installed editor extensions.
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4 events from the most recent confirmed update back to the earliest known activity.
After the extension was reported, Microsoft quickly removed 'ClawdBot Agent' from the marketplace. At the time of takedown, the extension had recorded 21 installs.
The Open VSX extension activated its malicious logic after reaching 5,066 downloads. Once triggered, it used encrypted JavaScript, Solana-based etherhiding command-and-control, and later-stage payload delivery to deploy a stealer targeting developer tokens, browser data, and crypto wallets.
Aikido Security researcher Charlie Eriksen discovered a malicious Visual Studio Code extension named 'ClawdBot Agent' on January 27, 2026. The extension impersonated the ClawdBot AI coding assistant while functioning as a trojan that dropped malware on Windows systems when VS Code launched.
A malicious Visual Studio Code extension impersonating the Angular Language Service was hosted on Open VSX and remained available for about two weeks. It bundled legitimate Angular and TypeScript components while hiding an encrypted multi-stage malware loader.
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Malicious Visual Studio Code extensions have been used to infect software developers with the **Evelyn Stealer**, a multistage malware payload designed to abuse trust in developer tooling and compromise developer workstations. Reporting indicates the campaign used a first-stage downloader disguised as a **Lightshot DLL**, followed by a second-stage injector that decrypted and hollow-injected the final payload into `grpconv.exe`, while related analysis also linked the malware to **screen-capture activity** inside infected environments. The final stealer employed anti-analysis and anti-virtual-machine checks, stole browser credentials through DLL injection, gathered system information and cryptocurrency wallet data, captured screenshots, and exfiltrated stolen data to attacker-controlled infrastructure over **FTP**. Researchers said the operation showed notable maturity through techniques including **AES-256-CBC** encryption, process hollowing, and targeted collection from developer systems, underscoring the risk posed by trojanized extensions in widely used coding platforms.
Aug 21, 2026
Security researchers have identified two malicious extensions on the Microsoft Visual Studio Code Marketplace, named *Bitcoin Black* and *Codo AI*, which were designed to infect developer machines with information-stealing malware. These extensions, published under the developer name 'BigBlack', masqueraded as a premium dark theme and an AI-powered coding assistant, but secretly downloaded additional payloads, took screenshots, and exfiltrated sensitive data such as code, emails, Slack messages, WiFi passwords, clipboard contents, and browser sessions to attacker-controlled servers. Microsoft has since removed these extensions from the marketplace after their discovery, but not before they were downloaded and installed by several users. The malware leveraged PowerShell and batch scripts to download and execute payloads, with later versions hiding execution windows to evade user detection. Technical analysis revealed that both extensions delivered a legitimate Lightshot screenshot tool alongside a malicious DLL, which was loaded via DLL hijacking to deploy the infostealer under the name `runtime.exe`. The malicious DLL was detected by multiple antivirus engines and created persistence by establishing directories in the `%APPDATA%\Local\` path. The Codo AI extension embedded its malicious code within a functioning tool, making it harder to detect, while Bitcoin Black activated on every VS Code action. The campaign highlights the risks of third-party extensions in developer environments and the need for vigilance when installing tools from public marketplaces.
Jun 29, 2026
Security researchers at ReversingLabs have identified a sophisticated campaign in which 19 malicious Visual Studio Code (VS Code) extensions were uploaded to the VS Code Marketplace, targeting developers by hiding a Trojan within their dependency folders. The attackers modified a widely trusted npm package, `path-is-absolute`, to include malicious code that executed upon VS Code startup, ultimately decoding a JavaScript dropper concealed in a file named `lock`. The final payload was disguised as a `banner.png` file, which, despite its image extension, was actually an archive containing two malicious binaries. This campaign, active since February 2025 and discovered in December, highlights the risks of supply chain attacks in developer ecosystems. The malicious extensions either impersonated popular packages or claimed to offer new functionalities, but in reality, they executed harmful code on developers' machines. The use of legitimate dependencies as a vector for malware delivery demonstrates an evolution in threat actor tactics, making detection more difficult. Researchers also noted a broader trend of increasing malware submissions to the VS Code Marketplace, including incidents where legitimate extensions were compromised through malicious pull requests that added harmful dependencies. This incident underscores the need for heightened scrutiny of third-party code and dependencies in development environments.
Jun 29, 2026