Fix/cyrex report #743

lucasgabrielgsp · 2025-12-09T14:48:39Z

Security Vulnerabilities Fix - Cyrex Penetration Test 2025

Summary

This PR addresses 7 security vulnerabilities identified in the Cyrex penetration test report for Pali Wallet 2025. The fixes span both the pali-wallet and sysweb3-keyring repositories, implementing defense-in-depth security measures while maintaining backward compatibility for existing users.

Vulnerabilities Addressed

ID	Vulnerability	Severity	CVSS	Status
001	Private Keys Encrypted With Hashed Password	HIGH	7.9	✅ Fixed
002	Low Password Complexity Threshold	MEDIUM	5.7	✅ Fixed
003	Stealing Seedphrase through Clipboard Attacks	MEDIUM	6.8	✅ Fixed
004	Password Rate Limiting Bypass	MEDIUM	4.6	✅ Fixed
005	Cached ENS Lookup in UI	INFO	-	✅ Fixed
006	Vulnerable Dependencies	INFO	-	✅ Fixed
007	Suboptimal Password Hashing	MEDIUM	4.0	✅ Fixed

Detailed Changes

🔐 Vulnerability 001 & 007: Cryptographic Improvements (sysweb3-keyring)

Problem:

Private keys were encrypted using a hashed password instead of a properly derived key
Authentication hash used single-pass HMAC-SHA512, vulnerable to brute-force attacks

Solution:
Implemented PBKDF2-based key derivation with proper separation of concerns:

// Encryption key derivation (NEVER stored)
deriveEncryptionKey(password, salt) → PBKDF2, 100,000 iterations, SHA-512, 256-bit

// Authentication hash (stored for verification)
deriveAuthHash(password, salt) → PBKDF2, 120,000 iterations, SHA-512, 512-bit

Vault Version System:

v1: Legacy (HMAC-SHA512 auth, hash-based encryption key)
v2: PBKDF2 encryption key, HMAC-SHA512 auth hash
v3: PBKDF2 encryption key AND PBKDF2 auth hash ← New secure format

Migration Strategy:

Existing users are automatically migrated to v3 on next successful login
Legacy session password support for seamless xprv re-encryption
Zero data loss - all existing accounts remain accessible

Files Changed:

packages/sysweb3-keyring/src/keyring-manager.ts

🔑 Vulnerability 002: Password Complexity Requirements (pali-wallet)

Problem:
Passwords only required 8 characters with 1 lowercase and 1 number - too weak for protecting cryptocurrency.

Solution:
Strengthened password requirements:

Requirement	Before	After
Minimum length	8 chars	12 chars
Uppercase	❌	✅ Required
Lowercase	✅	✅ Required
Number	✅	✅ Required
Special char	❌	✅ Required

Regex Pattern:

/^(?=.*[a-z])(?=.*[A-Z])(?=.*[0-9])(?=.*[!@#$%^&*()_+\-=\[\]{};':"\\|,.<>\/?]).{12,}$/

Files Changed:

source/components/PasswordForm/PasswordForm.tsx
source/assets/locales/en.json
source/assets/locales/es.json
source/assets/locales/pt.json
source/assets/locales/de.json
source/assets/locales/fr.json
source/assets/locales/ja.json
source/assets/locales/ko.json
source/assets/locales/ru.json
source/assets/locales/zh.json

📋 Vulnerability 003: Clipboard Attack Prevention (pali-wallet)

Problem:
Copy buttons for seed phrases and private keys allowed users to place sensitive data on the clipboard, where malicious websites could read it.

Solution:

Removed copy functionality from all seed phrase displays
Removed copy functionality for private key display
Added select-none CSS to prevent text selection
Kept eye toggle for show/hide functionality
Preserved xpub copy (public data, safe to share)

Files Changed:

source/components/Input/SeedPhraseDisplay.tsx
source/pages/Settings/Phrase.tsx
source/pages/Settings/ForgetWallet.tsx
source/pages/Settings/PrivateKey.tsx
source/pages/SeedConfirm/CreatePhrase.tsx

🚫 Vulnerability 004: Rate Limiting with Persistence (pali-wallet)

Problem:
Rate limiting for failed password attempts was only stored in memory - attackers could bypass it by restarting the browser.

Solution:
Implemented persistent rate limiting using chrome.storage:

// Configuration
MAX_FAILED_ATTEMPTS = 5
LOCKOUT_DURATION = 5 minutes

// Persisted state
{
  failedAttempts: number,
  lastFailedTime: number
}

Protected Methods:

unlock() - Main login
unlockFromController() - Controller unlock
getSeed() - View seed phrase
getPrivateKeyByAccountId() - View private key
forgetWallet() - Delete wallet

New Public API:

getRemainingLockoutTime() - Returns seconds until lockout expires (for UI display)

Files Changed:

source/scripts/Background/controllers/MainController.ts

⏰ Vulnerability 005: ENS Cache Expiration (pali-wallet)

Problem:
ENS lookups were cached indefinitely, allowing stale data to persist. ENS names can change, creating security risks.

Solution:
Implemented 5-minute TTL for ENS cache entries:

ENS_CACHE_TTL_MS = 5 * 60 * 1000; // 5 minutes

// Automatic cleanup
- Opportunistic cleanup when adding new entries
- clearExpiredEnsCache() reducer for manual cleanup
- clearAllEnsCache() for security-sensitive operations

Selectors Updated:

selectValidEnsCache - Returns only non-expired entries
selectEnsNameToAddress - Now uses valid cache
isEnsCacheEntryValid() - Helper to check entry validity

Files Changed:

source/state/vaultGlobal/index.ts
source/state/vault/selectors.ts
source/pages/Send/SendEth.tsx
source/pages/Send/Confirm.tsx
source/pages/Send/components/TransactionDetails.tsx
source/pages/Home/Panel/components/Transactions/EVM/EvmDetailsEnhanced.tsx

📦 Vulnerability 006: Dependency Updates (pali-wallet)

Problem:
Multiple npm packages had known security vulnerabilities.

Solution:

Direct Dependency Updates:

Package	Before	After	Vulnerabilities Fixed
axios	^1.7.9	^1.12.0	GHSA-4hjh-wcwx-xvwj, GHSA-jr5f-v2jv-69x6
@playwright/test	^1.49.1	^1.55.1	GHSA-7mvr-c777-76hp

Yarn Resolutions Added:

{
  "resolutions": {
    "node-fetch": "^2.7.0",
    "axios": "^1.12.0",
    "node-forge": "^1.3.2",
    "valibot": "^1.2.0",
    "glob": "^10.5.0",
    "cookie": "^0.7.0",
    "tmp": "^0.2.4",
    "jws": "^4.0.1",
    "js-yaml": "^4.1.1"
  }
}

Vulnerabilities Patched:

Package	Fixed Version	Severity	GHSA
node-fetch	2.7.0	High	GHSA-r683-j2x4-v87g
axios	1.12.0	High/Medium	Multiple
node-forge	1.3.2	High/Medium	GHSA-554w-wpv2-vw27, GHSA-5gfm-wpxj-wjgq, GHSA-65ch-62r8-g69g
valibot	1.2.0	High	GHSA-vqpr-j7v3-hqw9
glob	10.5.0	High	GHSA-5j98-mcp5-4vw2
cookie	0.7.0	Low	GHSA-pxg6-pf52-xh8x
tmp	0.2.4	Low	GHSA-52f5-9888-hmc6
jws	4.0.1	High	GHSA-869p-cjfg-cm3x
js-yaml	4.1.1	Medium	GHSA-mh29-5h37-fv8m

Files Changed:

package.json

Security Impact Summary

Area	Improvement
Key Derivation	100,000-120,000x slower to brute-force
Password Strength	~10^8x larger keyspace
Clipboard Attacks	Eliminated attack vector
Rate Limiting	Persists across browser restarts
ENS Cache	5-minute TTL prevents stale data
Dependencies	19 known vulnerabilities patched

Migration & Backward Compatibility

✅ Existing wallets automatically upgrade on next login
✅ No user action required
✅ No data loss during migration
✅ Legacy vault formats (v1, v2) supported during transition
✅ New wallets created with latest security (v3)

Test Plan

Cryptographic Improvements (001 & 007)

Create new wallet - verify v3 vault format created with PBKDF2 auth hash
Login with existing v1 wallet - verify automatic migration to v3
Login with existing v2 wallet - verify automatic migration to v3
Verify xprv decryption works after migration
Verify password validation works with new PBKDF2 auth hash

Password Complexity (002)

Test weak password rejection (< 12 chars)
Test password without uppercase rejection
Test password without special character rejection
Test valid strong password acceptance
Verify all locale files display correct requirements

Clipboard Prevention (003)

Verify seed phrase cannot be copied on Phrase page
Verify seed phrase cannot be copied on ForgetWallet page
Verify seed phrase cannot be copied on CreatePhrase page
Verify private key cannot be copied on PrivateKey page
Verify xpub CAN still be copied (public data)
Verify text selection is prevented with select-none

Rate Limiting (004)

Fail 5 password attempts - verify lockout
Close and reopen browser - verify lockout persists
Wait 5 minutes - verify lockout expires
Successful login - verify counter resets
Test rate limiting on getSeed, getPrivateKeyByAccountId, forgetWallet

ENS Cache (005)

Add ENS entry - verify timestamp added
Wait 5 minutes - verify entry expires
Verify selectValidEnsCache filters expired entries
Verify selectEnsNameToAddress uses valid cache
Test clearExpiredEnsCache reducer
Test clearAllEnsCache reducer

Dependencies (006)

Run yarn install successfully
Run grype . - verify vulnerability count reduced
Run existing test suite - verify no regressions
Build extension successfully

References

Cyrex Penetration Test Report - Pali Wallet 2025
OWASP Password Storage Cheat Sheet
NIST SP 800-132 - Password-Based Key Derivation
OWASP Cryptographic Storage Cheat Sheet

🤖 Generated with Claude Code

…assword Instead of Password

…d Attacks

lucasgabrielgsp added 6 commits December 9, 2025 10:19

[Vulnerability 001] - fix: solve Private Keys Encrypted With Hashed P…

a77ea93

…assword Instead of Password

[Vulnerability 003] - fix: solve Stealing Seedphrase through Clipboar…

a762758

…d Attacks

[Vulnerability 002] - fix: solve Low Password Complexity Threshold

0c94320

[Vulnerability 005] - fix: solve Password Rate Limiting Bypass

d5cacac

[Vulnerability 005] - fix: solve Cached ENS Lookup in UI

4e31e11

[Vulnerability 006] - fix: solve Vulnerable Dependencies

8e968bb

lucasgabrielgsp requested a review from sidhujag December 9, 2025 14:48

Merge branch 'develop' into fix/cyrex-report

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Fix/cyrex report #743

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lucasgabrielgsp commented Dec 9, 2025 •

edited by function0xMarki

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lucasgabrielgsp commented Dec 9, 2025 • edited by function0xMarki Loading Uh oh! There was an error while loading. Please reload this page.

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Security Vulnerabilities Fix - Cyrex Penetration Test 2025

Summary

Vulnerabilities Addressed

Detailed Changes

🔐 Vulnerability 001 & 007: Cryptographic Improvements (sysweb3-keyring)

🔑 Vulnerability 002: Password Complexity Requirements (pali-wallet)

📋 Vulnerability 003: Clipboard Attack Prevention (pali-wallet)

🚫 Vulnerability 004: Rate Limiting with Persistence (pali-wallet)

⏰ Vulnerability 005: ENS Cache Expiration (pali-wallet)

📦 Vulnerability 006: Dependency Updates (pali-wallet)

Security Impact Summary

Migration & Backward Compatibility

Test Plan

Cryptographic Improvements (001 & 007)

Password Complexity (002)

Clipboard Prevention (003)

Rate Limiting (004)

ENS Cache (005)

Dependencies (006)

References

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2 participants

lucasgabrielgsp commented Dec 9, 2025 •

edited by function0xMarki

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