July 20.2025
2 Minutes Read

Web3 Developers Beware: EncryptHub Exploits Fake AI for Malware Attacks

EncryptHub Targets Web3 Developers: Focused coder at dual monitors with graphs.

EncryptHub Targets Web3 Developers with Fake AI Platforms

The threat actor known as EncryptHub, also recognized as LARVA-208 and Water Gamayun, has emerged with a new tactic aimed at infecting Web3 developers with sophisticated information stealer malware. This campaign signals a notable evolution in EncryptHub's methods, as they increasingly adapt their strategies to exploit the vulnerabilities inherent within the decentralized, competitive environment of cryptocurrency development.

The Evolution of Malware Tactics

According to cybersecurity experts at PRODAFT, the attackers are using fake AI platforms like Norlax AI, which masquerade as legitimate services to lure victims with tempting job offers and portfolio reviews. This innovative approach targets developers who are often responsible for managing high-value cryptocurrency wallets and sensitive data, making them ideal candidates for exploitation.

How the Attack Works

The attack chains typically start by directing potential victims to these deceptive AI platforms, which then entice them to engage in what appears to be a professional interview. Unsuspecting developers are approached through platforms like X and Telegram, where they receive meeting invitations that lead them to conduct initial discussions via Google Meet. Once they are in the 'interview,' they are guided to Norlax AI to complete their meeting.

The moment a victim interacts with the meeting link, they are prompted to enter their email address and an invitation code, only to be met with a fake error message regarding audio drivers. This misleading warning initiates the download of malicious software disguised as a legitimate audio driver. Once executed, this software executes PowerShell commands to deploy a malware variant known as Fickle Stealer, capable of harvesting sensitive information such as cryptocurrency wallets and development credentials.

Implications for Web3 Development

The strategic focus on Web3 developers reveals a shift towards alternate monetization methods by cybercriminals. While traditional ransomware attacks have been popular, the growing trend of data exfiltration through infostealer malware suggests that attackers are honing in on the rich troves of data these developers manage. This evolution not only presents new risks for individuals but also challenges the security measures commonly adopted in enterprise settings.

Conclusion: Stay Vigilant

The EncryptHub attacks represent a significant risk in the cybersecurity landscape, particularly for individuals working in the rapidly advancing field of blockchain technology. Developers are urged to remain vigilant and adopt stringent security practices while engaging with online platforms, especially those that appear unconventional. With cyber threats becoming increasingly sophisticated, maintaining awareness and employing comprehensive defensive measures have never been more critical.

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