Microsoft Discovers Malware That Hijacks Crypto Wallets

2026-06-19 08:53:00 ET

Technology giant Microsoft (NASDAQ: ) is warning that it has discovered malware that spreads via USB sticks and targets cryptocurrency wallets.

Seattle-based Microsoft says the malware has been infecting Windows personal computers since February of this year and is capable of draining funds from crypto wallets.

Engineers at Microsoft have labeled the malware as a “crypto clipper” and say it is a Trojan:Win32/CryptoBandits bug.

The malware that’s spread via infected USB drives directs the operating system to open a specific program, folder, or file stored elsewhere on a person’s computer.

The malware, known as a “worm,” steals code from crypto wallets and can eventually drain them of funds.

When a user moves to send funds from their crypto wallet, the worm replaces it with an attacker-controlled address so that the transfer goes to the attacker rather than the intended recipient.

In a blog post, Microsoft recommends that people disable “AutoRun” on their computer, block .lnk file execution on USB drives, and restrict script hosts.

Microsoft has also published a list of indicators that a crypto wallet has been compromised.

MSFT stock has declined 20% over the last 12 months to trade at $379.40 U.S. per share.