Bitcoinlib, explained
Bitcoinlib is an open-source Python library designed to make Bitcoin development easier.
Think of it as a toolbox for programmers who want to create Bitcoin wallets, manage transactions, or build apps that interact with the Bitcoin blockchain. Since its launch, it’s been downloaded over 1 million times, showing just how widely trusted and used it is in the crypto community.
Here’s what Bitcoinlib does in a nutshell:
- Creates and manages wallets: It lets developers build Bitcoin wallets to store, send and receive Bitcoin securely.
- Handles transactions: It simplifies the process of creating, signing and broadcasting Bitcoin transactions.
- Supports multiple networks: Bitcoinlib works with Bitcoin’s main network (where real money is involved) and test networks (for experimenting without risk).
- Open-source and flexible: Being open-source, anyone can use, modify or contribute to its code, making it a go-to for developers worldwide.
For beginners, Bitcoinlib is like a user-friendly bridge to Bitcoin’s complex world. Instead of wrestling with the blockchain’s technical details, developers can use Bitcoinlib’s ready-made functions to get things done quickly. For example, this library automates tricky tasks like generating private keys or signing transactions, saving developers hours of coding.
Bitcoinlib under fire: How PyPI typosquatting put crypto wallets at risk
In early April 2025, security researchers raised alarms about a malicious attack targeting Bitcoinlib users. Hackers didn’t attack the Bitcoinlib library itself but instead used a sneaky trick to fool developers into downloading fake versions of the library.
This attack involved uploading malicious packages to PyPI, the platform where developers download Python libraries like Bitcoinlib. For developers and enthusiasts, tools like Bitcoinlib make it easier to interact with Bitcoin’s blockchain, create wallets, and build applications. But with great power comes great responsibility — and unfortunately, great risk.
The 2025 Software Supply Chain Security Report by ReversingLabs reveals that software supply chain attacks grew more sophisticated in 2024, with particular intensity around cryptocurrency applications. The report highlights 23 malicious campaigns targeting crypto infrastructure, primarily through open-source repositories like npm and PyPI (Python Package Index).
Attackers employed both basic typosquatting and advanced tactics, such as creating legitimate-looking packages that were later updated with malicious code. Examples include the “aiocpa” package, which initially appeared benign but was later weaponized to compromise wallets, and the attack on Solana’s web3.js library.
ReversingLabs calls cryptocurrency a “canary in the coal mine,” noting that the financial incentives make crypto platforms an attractive target — and a preview of future threats to other industries. The report urges organizations to move beyond trust-based assumptions, especially when dealing with third-party or closed-source binaries.
Let’s break down how it happened and why it’s a big deal.
How hackers targeted Bitcoinlib
Here’s a step-by-step look at the attack:
- Fake packages uploaded to PyPI: Hackers created two fake Python packages called “bitcoinlibdbfix” and “bitcoinlib-dev.” These names were deliberately chosen to sound legitimate, tricking developers into thinking they were updates or fixes for the real Bitcoinlib.
- Masquerading as solutions: The fake packages were marketed as solutions to a supposed issue with Bitcoinlib that caused error messages during Bitcoin transfers. Developers, eager to fix their code, downloaded these packages without suspecting foul play.
- Malware embedded in the code: Once installed, the fake packages unleashed wallet-draining malware. This malware replaced a legitimate command-line tool (called clw) with a malicious version. The fake tool was designed to steal sensitive data, such as private keys and wallet addresses, which are the keys to accessing and moving Bitcoin.
- Stealing crypto assets: With private keys in hand, hackers could access victims’ Bitcoin wallets and transfer funds to their own accounts. Since Bitcoin transactions are irreversible, victims had little chance of recovering their money.
Thankfully, security researchers used machine learning to spot the malware. By analyzing patterns in the fake packages, they identified the threat and warned the community, helping to limit the damage.
Why does this attack matter?
This hack wasn’t about breaking Bitcoin’s blockchain (which remains secure) but about exploiting human trust. Developers who downloaded the fake packages thought they were getting the real library and ended up with malware that could wipe out their Bitcoin (BTC) savings. It’s a reminder that even trusted platforms…
cointelegraph.com