Coinbase’s AI Tool Cursor Vulnerable to New ‘CopyPasta’ Exploit

A security vulnerability targeting AI coding assistants has been identified, posing risks to companies like Coinbase. Cybersecurity firm HiddenLayer reported that a "CopyPasta License Attack" can embed malicious instructions in developer files.

  • The exploit mainly affects Cursor, an AI coding tool used by Coinbase engineers.
  • Attackers can insert harmful payloads into files such as LICENSE.txt through hidden markdown comments.
  • This method allows the malware to spread automatically when the AI treats the “license” as legitimate.
  • Malicious code can create backdoors, exfiltrate data, or manipulate files without user awareness.
  • Coinbase CEO Brian Armstrong stated that AI generates up to 40% of the exchange's code.
  • AI-assisted coding is primarily focused on non-sensitive areas, with critical systems evolving more slowly.
  • The CopyPasta attack differs from previous threats by enabling self-propagation through trusted workflows, increasing its danger.
  • Security experts recommend scanning for hidden comments and manually reviewing AI-generated changes.

HiddenLayer emphasizes treating all untrusted data in AI contexts as potentially malicious to prevent further attacks.