A North Korea-linked threat group known as WaterPlum has introduced a new malware strain called StoatWaffle, distributing it through compromised Visual Studio Code (VSCode) repositories. These repositories are disguised as legitimate blockchain development projects, enabling attackers to quietly compromise developer systems. This activity is part of a broader campaign called “Contagious Interview,” where victims are lured through fake job opportunities and tricked into executing malicious code. Within the group, Team 8—also referred to as Moralis or Modilus—is responsible for this latest campaign. Previously reliant on OtterCookie malware, the team transitioned to StoatWaffle around December 2025, indicating a strategic upgrade. According to NTT Security researchers, this new malware reflects a more advanced and modular approach, enhancing the group’s ability to maintain access and extract sensitive information from infected machines. The attack begins when a developer opens a seemingly legitimate project in VSCode. A hidden configuration in the .vscode folder automatically runs a malicious task upon folder access, requiring no user interaction. This task downloads scripts from remote servers, installs Node.js if necessary, and initiates a multi-stage infection process that operates silently in the background. Once deployed, StoatWaffle activates both a credential-stealing module and a remote access component. It collects browser data, cryptocurrency wallet information, and system credentials, while also enabling attackers to execute commands and manage files remotely. Developers are advised to verify repository sources, review workspace trust settings, and monitor for unusual system behavior to reduce the risk of compromise.
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