Fake Moltbot AI Coding Assistant on VS Code Marketplace Drops Malware

Source Domain: thehackernews.com

Cybersecurity researchers have flagged a new malicious Microsoft Visual Studio Code (VS Code) extension for Moltbot (formerly Clawdbot) on the official Extension Marketplace that claims to be a free artificial intelligence (AI) coding assistant, but stealthily drops a malicious payload on compromised hosts.

The extension, named “ClawdBot Agent – AI Coding Assistant” (“clawdbot.clawdbot-agent”), has since been taken down by Microsoft. It was published by a user named “clawdbot” on January 27, 2026.

Moltbot has taken off in a big way, crossing more than 85,000 stars on GitHub as of writing. The open-source project, created by Austrian developer Peter Steinberger, allows users to run a personal AI assistant powered by a large language model (LLM) locally on their own devices and interact with it over already established communication platforms like WhatsApp, Telegram, Slack, Discord, Google Chat, Signal, iMessage, Microsoft Teams, and WebChat.

The most important aspect to note here is that Moltbot does not have a legitimate VS Code extension, meaning the threat actors behind the activity capitalized on the rising popularity of the tool to trick unsuspecting developers into installing it.

The malicious extension is designed such that it’s automatically executed every time the integrated development environment (IDE) is launched, stealthily retrieving a file named “config.json” from an external server (“clawdbot.getintwopc[.]site”) to execute a binary named “Code.exe” that deploys a legitimate remote desktop program like ConnectWise ScreenConnect.

The application then connects to the URL “meeting.bulletmailer[.]net:8041,” granting the attacker persistent remote access to the compromised host.

“The attackers set up their own ScreenConnect relay server, generated a pre-configured client installer, and distributed it through the VS Code extension,” Aikido researcher Charlie Eriksen said. “When victims install the extension, they get a fully functional…

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