Morning Edition · Monday, June 22, 2026Published at 6:29 AM EDT · New York

Microsoft Flags USB-Borne Wallet Malware as a Distinct Attack Surface Grows

Beyond smart-contract exploits, key-stealing malware that compromises the device itself is becoming a separate and expanding threat to self-custody, alongside a steady series of mid-size decentralized finance (DeFi) thefts.

Microsoft has warned of a malware family it links to a campaign that uses USB drives to reach crypto wallets on compromised machines, CryptoSlate reported. The research highlights a threat that avoids on-chain defenses entirely. A compromis…