Quick Breakdown:
- A cybersecurity firm discovered a “CopyPasta License Attack” vulnerability in Cursor, an AI coding tool widely used at Coinbase.
- This virus hides malicious instructions in common developer files like LICENSE.txt and README.md, tricking the AI into spreading malware silently across the codebase.
- The threat extends to other AI coders and poses risks from data theft to system paralysis.
Coinbase’s preferred AI programming tool, Cursor, has been exposed to a novel cybersecurity threat highlighted by cybersecurity firm HiddenLayer. The vulnerability, termed the “CopyPasta License Attack,” allows hackers to embed malicious instructions within standard developer files such as LICENSE.txt and README.md. These hidden instructions, delivered as prompt injections in markdown comments, trick the AI into recognizing them as essential, causing it to replicate harmful code across an entire organization’s codebase silently.
By disguising the virus as a critical license file comment, attackers can quickly distribute malicious payloads with minimal user interaction. The implications are severe, extending beyond simple disruptions. The injected code could create backdoors, siphon confidential data, enact resource-draining operations, or corrupt critical files vital for both development and production environments—all without immediate detection.
HiddenLayer’s tests demonstrated that Cursor automatically copied the infected prompt injections to new files it created, proving the ease with which malware can propagate using this exploit. Notably, Cursor has been the preferred AI coding assistant for Coinbase engineers, with the firm confirming that by February, every Coinbase engineer was using it extensively.
The threat is not isolated to Cursor. Other AI programming tools, including Windsurf, Kiro, and Aider, were reported to share this vulnerability, underscoring the growing cybersecurity challenge facing AI-assisted software development. Experts warn that as AI coding tools gain autonomy, prompt injection attacks like this could escalate, necessitating rigorous scanning and approval mechanisms to safeguard codebases.
Coinbase boss slammed for outrageous use of AI
This incident also raises concerns regarding Coinbase CEO Brian Armstrong’s earlier announcement, endorsing AI-generated code for up to 50% of company projects, which some industry professionals have criticized for potential security risks.
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