"Crypto Wallets Under Siege: SparkCat Malware Targets 242K Users"

Malware Targets Crypto Wallets in App Stores

Kaspersky Labs, a cybersecurity firm, has warned about malicious software development kits (SDKs) found in applications on Google’s Play Store and Apple’s App Store. These SDKs use optical character recognition (OCR) to search for specific keywords in images, enabling cybercriminals to access and drain funds from crypto wallets. The malware, named SparkCat, is capable of extracting not only wallet recovery phrases but also other personal data from a device’s photo gallery, such as passwords and message content. The malware operates on Android apps through a Java component called Spark, which masquerades as an analytics module, and employs an encrypted configuration file hosted on GitLab for receiving commands. Kaspersky’s research indicates that the malware has been downloaded approximately 242,000 times since its activation around March, targeting mainly Android and iOS users in Europe and Asia. The malware is present in a variety of legitimate-looking and fake apps, sharing common features like the use of the Rust programming language, cross-platform functionality, and sophisticated obfuscation techniques that hinder analysis and detection efforts. The true origin of SparkCat remains uncertain, as it is not yet clear whether the infected apps were compromised through a supply chain attack or if developers intentionally incorporated the Trojan. However, evidence within the malware’s code, such as comments and error descriptions in Chinese, suggests that the developer might be fluent in Chinese. This discovery follows a similar campaign identified by ESET researchers in March 2023. In light of these findings, Kaspersky’s analysts have advised users to avoid storing sensitive information in screenshots or a phone’s picture gallery and to use a password manager instead. They also recommend promptly removing any apps that appear suspicious or infected. At the time of reporting, neither Google nor Apple had provided an official response to the situation.

Republican Leaders Form Group for Crypto Framework

Republican leaders from key House and Senate committees announced the formation of a working group dedicated to developing legislation for a comprehensive digital asset framework and stablecoin regulations in the United States. This bipartisan initiative involves members from the House Financial Services Committee, House Agriculture Committee, Senate Banking Committee, and Senate Agriculture Committee. Arkansas Representative French Hill, who chairs the House Financial Services Committee, revealed during a press conference on February 4 that the group would operate on a bicameral basis. The goal, according to Rep. Hill