A developer lost $500,000 in cryptocurrency due to a malicious coding extension in Cursor IDE that granted attackers remote access.
The extension appeared legitimate with professional descriptions and inflated download counts, deceiving the developer about its true intent.
The attackers exploited weaknesses in the Open VSX marketplace to distribute the malicious extension, bypassing common trust indicators.
Developers are advised to scrutinize extensions, isolate sensitive tasks, and implement security best practices to mitigate risks posed by malicious tools.