A new kind of cyber threat is unfolding in the crypto space – and this time, it's hitting from inside the software supply chain. Malicious code has been embedded into trusted npm packages, silently intercepting and replacing crypto wallet addresses to reroute funds.

This marks a dangerous fusion of Web2 malware and Web3 financial crime, expanding the attack surface in ways most traditional tools are simply not built to detect.

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What Happened?

Several high-profile JavaScript libraries commonly used in crypto frontends have been compromised. This includes packages like:

chalk, debug, wrap-ansi, supports-color, color-name, slice-ansi, and more.

The injected payload performs three critical functions:

• Monitors network responses inside apps

• Identifies crypto wallet addresses in those responses

• Silently replaces them with attacker-controlled addresses that look nearly identical

This kind of attack is invisible to the user and devastatingly effective, the crypto address you see isn’t always the one you’re actually sending to.

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Cyvers Analysis: The Real Risk Begins After Injection

The malicious code alone doesn’t steal funds. It sets the stage.

The actual theft happens when a user unknowingly signs a transaction to the attacker’s address. That’s where runtime protection, transaction simulation, and real-time fraud detection become essential.

This is exactly the kind of layered, behavioral attack Cyvers was built to stop.

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How Cyvers Defends Against This Attack Vector

✅ Pre-Transaction Threat Interceptor

We simulate and validate transactions in real time, identifying high-risk wallet addresses before a signature is ever applied. Even when malicious addresses are disguised to appear legitimate, our system detects lookalikes, laundering patterns, and behavioral anomalies. For smart contract interactions, we go a step further- analyzing the actual end state of the transaction, even when it's complex or intentionally obfuscated.

✅ Real-Time Threat Detection

Our AI models runs on every block, every transactions and detects malicious transactions and addresses involved in :
Smart contract exploits
Wallet hacks
Scams
Malicious contract deployments  
Money laundering and financial crime

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Web2 Meets Web3: A New Threat Era

This incident proves what we've warned for months: Crypto isn’t just vulnerable on-chain – it’s increasingly vulnerable through the Web2 stack.

Attackers are now:

• Poisoning JavaScript libraries

• Compromise cloud infrastracture

• Embedding payloads in CI/CD tools

• Hijacking frontend code to manipulate address displays

Traditional static analysis tools can’t catch this.

Only runtime monitoring and real-time decision-layer security can close this gap – and that’s Cyvers' specialty.

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What You Should Do Right Now

For exchanges, custodians, and Web3 platforms:

1. Audit your frontend dependencies. If you use the affected packages, check for modified code or update immediately.

2. Implement pre-transaction simulation on all outgoing transfers.

3. Screen all destination addresses using real-time threat feeds and risk scoring.

4. Leverage fraud interception tooling that goes beyond static indicators.

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What Makes Cyvers Different?

• Geometric AI and topological detection models

• Cross-chain & cross-token tracing

• Live address screening + fraud prevention API

• Integration-ready across 9+ EVMs with real-time alerts

• Proactive detection of laundering topologies and scam clusters

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‍Final Thoughts

This npm supply chain attack is more than just a glitch in a library. It’s a blueprint for future Web3 fraud- blending trust, timing, and technology to extract value invisibly.

Without proactive transaction monitoring and runtime fraud detection, many platforms are flying blind.

At Cyvers, we don’t wait for incidents to make headlines. We see them forming, we trace the networks behind them, and we stop the funds from moving.

Our take is clear: we operate under the assumption that every user or organization will eventually be targeted or compromised. That’s why Cyvers serves as the last line of defense, intercepting malicious transactions before they’re broadcast to the blockchain, when it’s still possible to stop irreversible damage.

Want to protect your platform before the next threat spreads?
Book a demo with our team: https://calendly.com/d/cqjd-77h-r6x/cyvers-first-call?utm_medium=social&utm_campaign=shiri

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