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Malware Alert as Desert Dexter Strikes Over 900 Victims Worldwide

 


Several countries in the Middle East and North Africa have been targeted by an advanced Trojan named Desert Dexter, identified by security experts at Positive Technologies. This malware campaign has compromised nearly 900 victims as a result of its sophisticated campaign. The AsyncRAT malware campaign began in September 2024 to spread a modified variant of the malware using social media platforms and geopolitical tensions in an attempt to exploit these platforms. 

Using deceptive tactics to lure unsuspecting users, hackers exploit the vulnerabilities in the Internet, highlighting the growing threat posed by cyber espionage and political cyberattacks. The Positive Technologies Expert Security Center (PT ESC) has discovered and analyzed a new malware campaign that has been orchestrated to target individuals in the Middle East and North Africa (MENA) region with the primary aim of infecting their systems and exfiltrating sensitive data as a result. 

The campaign has been active since September 2024 and has been using a modified version of AsyncRAT to compromise victims' systems and steal sensitive information. On social media, attackers disguised themselves as legitimate news outlets to spread malware, crafting misleading promotional posts containing links to file-sharing services and Telegram channels, which allowed them to spread malware. 

Once executed, the malware extracts cryptocurrency wallet credentials and establishes communications with a Telegram bot, enabling remote data theft and control over cryptocurrency wallets. About 900 individuals have been reported to be affected by this malware, primarily everyday users. The investigation indicates a significant number of victims are employees from key industries, including oil and gas, construction, information technology, and agriculture. This raises concerns about espionage and financial fraud, which could occur in these industries. 

Based on a geographical analysis of the infections, Libya (49%) has been the worst hit, followed by Saudi Arabia (17%), Egypt (10%), Turkey (9%), the UAE (7%), and Qatar (5%) with additional cases reported across other regions. This attack is widespread, which shows that cybercriminals are evolving their tactics, and enhanced cybersecurity measures are necessary to keep them from harm. This malicious campaign was orchestrated by the Desert Dexter threat group, a group that is named after a single employee suspected of running it. 

It was discovered by cybersecurity researchers that hackers were using temporary accounts and fake news channels to evade advertising filters and disseminate malicious content on Facebook, which enabled them to evade ad filtering mechanisms. There was a similar campaign reported in 2019, however this latest operation seems to incorporate enhancements aimed at improving the efficiency and impact of the malware. 

According to Denis Kuvshinov, Head of Threat Intelligence at Positive Technologies, the attack follows a multi-stage approach that involves several steps and attacks. The initial victim is lured to a file-sharing service or Telegram channel, where a RAR archive containing malicious files is downloaded unintentionally, causing them to unknowingly download them. 

After the files are executed, they install a modified version of AsyncRAT, which gathers data about the system, transmits it to the threat actors' Telegram bot, and then distributes it to them. This variant of AsyncRAT contains the upgraded IdSender module specifically designed for cryptocurrency wallet extensions, two-factor authentication plugins, and wallet management software that are specifically targeted by the latest version. 

Although Desert Dexter's campaign's success has been largely attributed to the use of social media advertising and legitimate online services, which are not highly technical, the tools used by the organization have not been highly sophisticated. There is an attack underway by malicious actors targeting both individuals and high profile officials within the Middle East and North Africa (MENA) region as a result of geopolitical tensions within the region. 

Due to ongoing political instability throughout the MENA region, cyber threats remain a top priority, with phishing campaigns increasingly focusing on politically charged themes to deceive and compromise victims in the region. While the majority of individuals involved in the cyberattack seem to be everyday consumers, cybersecurity researchers have identified individuals across a wide variety of industries, including those involved in oil production, construction, technology, and agriculture, who have also been affected by the cyberattack. 

With the widespread scale of these infections, it is clear that social engineering techniques are effective at deceiving victims and geopolitical narratives. Through the application of these tactics, the attackers managed to successfully infiltrate multiple devices in multiple countries, even though they utilized relatively simple tools. There is a malware campaign that is continuing to succeed, and cybersecurity experts are urging everyone to exercise caution when confronted with unverified links or attachments, particularly those that claim to contain sensitive political material. 

Several organizations operating within the affected regions are advised to adopt proactive cybersecurity strategies, enhance employee awareness regarding cybersecurity threats, and implement robust security protocols for mitigating the risks posed by this and similar emerging threats that are being faced by these organizations.

Telegram's TON Blockchain Embarks on US Growth Mission

 



A foundation, closely associated with Telegram, called the Open Network (TON), is pursuing ambitious expansion in the United States. A strategic move like this comes amid the expectation that Donald Trump's upcoming administration will be able to offer a more favourable regulatory environment. The TON Foundation is proud to announce a pivotal leadership transition: Manuel "Manny" Stotz, an experienced investor and blockchain advocate, has been selected as President of the organisation. 

There is a new chapter in the foundation's journey to accelerate global adoption of the blockchain, emphasising expanded operations in the United States as part of a strategic expansion plan. In a statement released by a spokesperson for the TON Foundation to Cointelegraph on January 14, a spokesperson confirmed to the Cointelegraph that the US will become one of the most important markets for TON under the Trump Administration. 

The TON Foundation has recently appointed Manuel Stotz, one of the world's leading digital asset investors, as its new president. The foundation will be able to expand its operations in the U.S. market with Stotz, the founder of Kingsway Capital Partners. Stotz stated that the U.S. would soon become a global crypto centre specialising in innovation. Steve Yun, who will remain a board member, will resign from the presidency, and he will be taking over the CEO role. 

In light of the trend that a new president in the US is expected to provide a more favourable environment for cryptocurrency, this shift reflects this expectation. It is expected that his administration will address some of the most important regulatory issues on the day of his inauguration, which is scheduled for January 20, among crypto supporters. Among the concerns is how digital assets are treated by banks, with many in the crypto sector hoping that a change will happen in the rules regarding whether they will be accounted for as liabilities. 

In addition to the issue of “de-banking,” which has impacted many crypto firms in the U.S., another issue that may be addressed is the issue of blockchain technology and its prospects. It has been Stotz's honour to serve as a board member of the TON Foundation since it was founded in Switzerland in 2023. With his new role at the TON Foundation, he will replace Steve Yun, who remains on the board. Stotz is a major investor in the digital asset industry and is the founder of Kingsway Capital Partners, an investment management firm. 

There have been over 50 projects backed by the firm, among them Animoca Brands, Blockchain.com, CoinDCX, Toncoin, Genesis Digital Assets, and others. In the TON Foundation's opinion, the changing regulatory environment in the United States offers new opportunities for blockchain technology. Notably, several industry participants are optimistic about the incoming administration's pro-crypto stance, which includes plans for creating a national Bitcoin reserve and promoting blockchain-based economic reform. 

As President-elect Trump has also indicated his desire to advance the field by appointing influential figures, such as Paul Atkins and David Sacks, to key positions in the sector, it is anticipated that these developments will lead to a surge in blockchain and artificial intelligence innovation. TON Foundation president Stotz believes that these developments may signify a turning point for the industry as a whole, and he believes that the US is an important market for accelerating blockchain adoption worldwide.

A decentralised project called TON is closely related to Telegram's TON blockchain, which was developed by the messenger and then turned into a decentralised project. The Toncoin token allows the network to provide 950 million Telegram users with services such as in-app payments and games, and with Stotz's leadership, TON plans to increase its user base and integrate blockchain-based solutions into everyday applications under Stotz's leadership. 

The main objective of the fund is to use Telegram's vast global audience to promote the widespread adoption of blockchain technologies. With the TON Foundation, which is dedicated to supporting the development of the TON blockchain, Telegram's 950 million users will have access to crypto services through Telegram's platform. In 2023, Telegram formalised the foundation in Switzerland, a year after a 2020 settlement with the SEC ended Telegram's earlier fundraising efforts. 

It was announced in December 2024 that the foundation would be expanding to Abu Dhabi following the ADGM's distributed ledger technology framework. This move is intended to provide legal backing for decentralised projects throughout the MENA and APAC regions, with a target of reaching 500 million users by 2028. In the crypto industry, the return of Trump to power could be considered a turning point in the market as a result. He has announced that cryptocurrencies will be treated differently in the United States of America than they were in the past, which could result in more blockchain projects coming into the country in the future and increased innovation in decentralised technologies. 

Despite this change in leadership at the TON Foundation, the organisation continues to adhere to its mission and values even during this transition and continues to follow through with its objectives. As a board member of the foundation, Steve Yun provides ongoing leadership and direction and Manny Stotz plays a pivotal role in helping to make it a place for growth, collaboration, and innovation in the future. TON anticipates milestones to be achieved in the US over the coming months, which will further enhance the company's reputation as one of the leading blockchain companies in the world.

Tech Ventures: Israel Advances in Crypto Ecosystem

Tech Ventures: Israel Advances in Crypto Ecosystem

Israel, often known as the "Startup Nation," has emerged as a global leader in cybersecurity, defense, and internet technologies. Cryptocurrency has easily integrated into the high-tech ecosystem, transforming the digital asset class and blockchain technology into key drivers of the country's economic growth. 

Bitcoin ETFs: The Game Changer

In January 2024, when the Securities and Exchange Commission approved various Bitcoin ETFs in the United States, the worldwide crypto market had a 70% price increase, bringing more than $11 billion into the industry. BTC ETF options for US markets were announced in November 2024, resulting in increased retail and institutional investor inflows into the crypto markets. This contributed to the global crypto bull run.  

Blockaid, Ingonyama, Tres, Oobit, and Fordefi are all part of Israel's cryptocurrency ecosystem. In January 2024, Israel had 24 "unicorns". These are private enterprises worth more than $1 billion.  Then there's Starkware, a leader in the Ethereum scaling field, which has reached a $20 billion valuation since the creation of the $STARK token. 

According to a recent yearly assessment, Tel Aviv has the fifth most attractive startup ecosystem in the world. Despite geopolitical uncertainties, the crypto community will undoubtedly increase. These are cryptocurrency enthusiasts, after all.

Israel and Tech Startup Landscape

Israel has traditionally inspired the technology sector, so it was logical that the blockchain would find its place here. The country has a strong emphasis on education, research, and development, as well as a surplus of technical skills. 

They discovered an odd ally in military intelligence who has assisted in the development of tech entrepreneurs and the facilitation of their cryptocurrency investments. Unit 8200 is deeply involved in the cryptocurrency world, and its alumni have joined and established successful firms, bringing government ties, extensive cybersecurity knowledge, and a well-rounded computer education to the blockchain. The Mamram Blockchain Incubator is also associated with the IDF's Centre for Computing and Information Systems.

Tech Revolution in Israel

The Israeli government has contributed to the digital revolution by publicly experimenting with one of the world's first Central Bank Digital Coins. In 2021, the government released the first prototype of the Digital Shekel, and the Bank of Israel recently announced a Digital Shekel Challenge to investigate potential CBDC uses.

The country is also investing in supercomputer technology to compete in the Artificial Intelligence arms race and keep its position at the forefront of the tech start-up scene. 

Crypto Bull Market Targeted: The Lottie-Player Security Breach


In an alarming development for the tech community, especially for those immersed in the Web3 ecosystem, a supply chain attack has targeted the popular animation library, Lottie-Player. If users fall for this prompt, it could enable attackers to drain cryptocurrency wallets. 

Given Lottie-Player's impressive tally of over 4 million downloads and its significant presence on many prominent websites for animation embedding, this incident underscores the security vulnerabilities associated with open-source libraries.

Understanding the Attack

The breach initially came to light on GitHub when a user noticed an unusual Web3 wallet prompt while integrating Lottie-Player on their website. Upon closer examination, it was discovered that versions 2.0.5, 2.0.6, and 2.0.7 of Lottie-Player, released between 8:12 PM and 9:57 PM GMT on October 30, 2024, had been tampered with and compromised.

The attack involved the introduction of malicious code into three new versions of the Lottie-Player library, a widely used tool for rendering animations on websites and applications. Threat actors infiltrated the distribution chain, embedding code designed to steal cryptocurrencies from users' wallets. This method of attack is particularly insidious because it leverages the trust developers place in the libraries they use.

The Broader Implications

Once the compromised versions were released, they were integrated into numerous high-profile projects, unknowingly exposing countless users to the threat—the malicious code activated during transactions, redirecting funds to wallets controlled by the attackers. In one notable case, a user reportedly lost 10 Bitcoin (BTC), worth hundreds of thousands of dollars, due to a phishing transaction triggered by the malicious script.

Following the discovery of the attack, the Lottie-Player team swiftly released a clean version, 2.0.8, which developers can use to replace the compromised files. To further contain the breach and limit exposure, versions 2.0.5 through 2.0.7 were promptly removed from npm and CDN providers like unpkg and jsdelivr.

Moving Forward

The attack occurred during a pivotal phase of the crypto bull market, intensifying efforts to steal increasingly valuable tokens. To mitigate risks, it's advisable to connect a wallet only for specific purposes rather than granting full-time permissions for signing transactions. Additionally, being prompted to connect a wallet immediately upon entering a website can serve as a potential warning sign.

PyPI Hosts Malicious Tools Targeting Crypto Wallets

 


During an investigation conducted recently, it was discovered that several malicious packages masquerading as services for recovering cryptocurrency wallets were found in the Python Package Index repository, revealing that they were spying on sensitive personal information and helping to steal cryptocurrency. A Checkmarx researcher described the attack as targeting Atomic, Trust Wallet, Metamask, Ronin, TronLink, Exodus, and many other prominent wallets within the crypto ecosystem in a report released on Tuesday. 

It was found that the packages presented themselves as tools that could extract mnemonic phrases and decrypt wallet data, suggesting that they could provide value to cryptocurrency users who are looking to recover or manage wallets" As long as cryptocurrencies remain a prime target for cybercriminals, they will continue to thrive in the ecosystem. 

The recent discovery of malicious packages located on the Python Package Index (PyPI) repository in the Python distribution has led to several tools that masquerade as tools that can help recover and manage crypto wallets. It is a fake tool that is used to steal sensitive information from users and facilitate the theft of valuable digital assets, among other things. 

According to Checkmarx researchers, there have been several malicious Python packages found on PyPI that attack users of leading cryptocurrency wallets like Atomic, Trust Wallet, MetaMask, Ronin, TronLink, and Exodus, as well as other popular apps. According to Checkmarx, the names of the packages in the Cryptocurrency ecosystem packages are deliberate efforts aimed at luring developers who are active in cryptocurrency ecosystems. 

The package descriptions on PyPI also came with links to installation instructions, examples on how to use them, and in one case, even an explanation of the "best practices" for virtual environments for installation. Again, this was meant to lend legitimacy to the libraries. Furthermore, the threat actor behind the campaign did more than simply deceive users about the popularity of the packages within the campaign, as they also displayed false download statistics, creating the impression that the packages were trustworthy and popular. 

In the identified PyPI packages, there was a dependency called cipherbcryptors that was required for the malicious code to be executed while in a few other cases, the Malware relied on ccl_leveldbases, which seemed to be an attempt to obfuscate the functionality by using another package. This is an important point to note in the case of the malicious functionality in the packages since the malicious functionality is only activated when certain functions are called, which is a departure from the typical pattern where such behaviour would be activated automatically by the installed package upon installation. 

An end-to-end process is then used to exfiltrate the data from the remote server into the hinterland. As Gelb explains, the attacker deployed an additional layer of security as he did not hard-code the address of their command-and-control server into any of the packages that were distributed. They had to rely on external sources to retrieve the information in a dynamic way rather than using internal resources. A technique commonly referred to as a dead drop resolver provides attackers with the flexibility to update the server information without having to update the packages themselves to take advantage of this type of attack. 

Furthermore, should the servers have to be taken down, it will make the process of switching between server infrastructures as simple as possible. This information has been collected to determine whether the attackers as part of their strategy to lure developers and end users will be successful. The author provides a great deal of information about the packages, including detailed descriptions, installation instructions, usage examples, and even best practices for running virtual machines at home. The hackers also manipulated download statistics to mislead the users into believing that the program was popular and trustworthy. 

It is noteworthy that the attackers used a technique known as a dead drop resolver to retrieve the addresses of their command and control servers efficiently. As a result of not hard-coding the server addresses within the packages, they will be able to update information about the servers without having to push new package versions, so security measures will be unable to detect and block the server updates. There was a recent discovery of fake crypto wallet recovery tools on PyPI. This underlines how cybercriminals are continuously evolving their tactics to target cryptocurrency and the crypto sector as a whole. 

The developers and users are equally responsible for safeguarding their digital assets, ensuring they are vigilant, practising due diligence when installing software packages, and utilizing security solutions such as Vulert to protect their assets. According to details revealed in August 2024, CryptoCore, an elaborate cryptocurrency scam that uses fake videos or hijacked accounts on social media platforms such as Facebook, Twitch, X, and YouTube as a method of tying users into selling their crypto assets under the guise of fast and easy profits, has been operating since August 2024. 

"This scam group and its giveaway campaigns will deceive users into sending their cryptocurrencies to the scammers' wallets by using deepfake technology, hijacked YouTube accounts, and professionally designed websites to deceive them into sending their cryptocurrencies to the scammers' wallets," Avast researcher Martin Chlumecký said. The most common way for scammers to convince potential victims that messages or events published online are official communications from trusted social media accounts or event pages is to persuade them to believe what is being posted online can be trusted. As a result, they can profit from the trust attached to the chosen brand, person, or event. 

Last week, a rogue Android app was impersonating the genuine WalletConnect protocol, which was used by the malware to steal around $70,00 in cryptocurrency by initiating fraudulent transactions from infected devices, as revealed by Check Point.

SpyAgent Malware Uses OCR Tech to Attack Crypto Wallets

SpyAgent Malware Uses OCR Tech to Attack Crypto Wallets

Malware Using OCR to Steal Crypto Keys

Cybersecurity experts have found a new malware threat that lures users into downloading a malicious app to grow. An advanced malware strain campaign has surfaced from North Korea, it attacks cryptocurrency wallets by exploiting the mnemonic keys of the users. McAfee researcher SangRyo found the malware after tracking stolen data from malicious apps for breaking servers and gaining access. 

The working of SpyAgent

The malware is called SpyAgent, and it targets cryptocurrency enthusiasts. What makes this malware unique is its ability to use OCR technology for scanning images, it leverages Optical Character Recognition (OCR) technology to steal mnemonic keys stored in the images of infected devices. Hackers use these mnemonic keys to gain unauthorized entry into digital assets. 

These keys are twelve-word phrases used for recovering cryptocurrency wallets. There has been a rise in the use of mnemonic phrases for crypto wallet security because they are easy to remember if compared to a long strain of random characters. 

Spy Agent pretends to be a legitimate application, such as banking, streaming, government services, or utility software. McAfee has discovered over 280 fake applications.

Distribution of SpyAgent

When a victim downloads a malicious app containing SpyAgent, the malware builds a command and control  (C2 )server that allows threat actors to launch remote commands. Later, the attacker extracts contact lists, text messages, and stored images from the compromised device. 

“Due to the server’s misconfiguration, not only were its internal components unintentionally exposed, but the sensitive personal data of victims, which had been compromised, also became publicly accessible. In the ‘uploads’ directory, individual folders were found, each containing photos collected from the victims, highlighting the severity of the data breach,” the report says.

Reach of SpyAgent

SpyAgent has been found working in Korea, but its range has widened to other countries as well. The malware is capable of disguising itself as a legitimate application, which makes it dangerous. SpyAgent has recently expanded to the United Kingdom. 

It has also moved from simple HTTP requests to web socket connections, allowing real-time two-way communication with the C2 server. It escapes security researchers via techniques like function remaining and string encoding. 

The McAfee report recommends “users to be cautious about their actions, like installing apps and granting permissions. It is advisable to keep important information securely stored and isolated from devices. Security software has become not just a recommendation but a necessity for protecting devices.”

Hackers Exploit Dark Skippy Attacks to Steal Secret Keys from Secure Devices

 


An element of the Dark Skippy attack involves the subtle manipulation of nonces during the signature creation process to create the signature. To obtain the private key of a cryptocurrency wallet, attackers craft carefully crafted nonces, thereby gaining full access to the wallet by extracting the private key. The nature of this attack is particularly insidious.

Due to the covert nature of its execution, no trace of how it was carried out can be found. Additionally, it can impact every user of an infected device. Earlier this year, security researchers from the University of Cambridge were able to disclose an entirely new type of malware attack that will allow hackers to access hardware wallets and private keys held by users after two signed transactions. 

Known as Dark Skippy by the researchers, the attack occurs when a hacker becomes aware of a user's device and tricks him into downloading malware to gain access. As part of the disclosure, Nick Farrow, Lloyd Fournier, and Robin Linus included information regarding Dark Skippy that can be found here. A new hardware wallet software company called Frostsnap was founded by Nick Farrow and Lloyd Fournier in 2012. Currently, Robin Linus is one of the people who are in charge of BitVM and ZeroSync protocols that relate to Bitcoin. Every signer device inserts random numbers, or nonces, into every transaction that is signed with Bitcoin, which is explained in the report. 

Even though the vulnerability was not discovered until March 8, 2024, about 15 vendors were privately informed about it during that period. As a result of Dark Skippy, it is possible to leak private keys with a sophisticated attack technique that exploits the corrupted firmware of Bitcoin hardware wallets and signing devices. 

Although the technique has primarily been identified in the context of cryptocurrency security, it could have applications in other types of cryptographic systems as well, despite its focus on cryptocurrency security. However, even though this malware is theoretically powerful, it has not yet been observed in a real-world attack environment. 

Generally, if a device is maliciously designed, it will be able to execute this process. It is still considered an academic concept at the moment, and real-world attacks based on this concept have not yet been witnessed. A key aspect of protecting against Dark Skippy is to use only genuine devices that come with a firmware that was not modified in any way. 

The user's funds are immediately lost as soon as the attacker compromises a device with malicious firmware that supports executing a Dark Skippy attack, and this can have a devastating impact on the user's funds. There is no doubt that cryptocurrency is becoming more popular and the value of secure hardware wallets and constant vigilance is on the rise. 

A cryptocurrency signing device equipped with Dark Skippy is vulnerable to Schnorr signature technology, which is used to sign cryptocurrency transactions. In a recent development, a sophisticated attack method known as the "Dark Skippy" attack has emerged, allowing hackers to compromise the security of signing devices by manipulating nonces during the creation of digital signatures. This attack targets the firmware of these devices, exploiting vulnerabilities to extract secret keys, which are crucial for secure cryptographic operations. 

The Dark Skippy attack offers several key advantages to attackers, making it particularly concerning. It operates covertly, leaving little trace of its activity, and does not require additional communication channels to execute. Furthermore, it is effective against stateless devices, which typically lack the memory to track previous states. It can exfiltrate the master secret, putting every user of a compromised device at risk. In response to this emerging threat, Nick, a cybersecurity expert, took to Twitter to discuss protocol-based mitigations used to combat similar attacks. 

These include anti-exfiltration measures and deterministic nonces to prevent unauthorized key extraction. Additionally, three researchers have presented new mitigation strategies in a recently published report. These strategies are designed to coexist with partially signed Bitcoin transactions (PSBT) signing workflows, offering enhanced protection against attacks like Dark Skippy. The two primary mitigation measures suggested in the report are the mandatory use of adaptor signatures and the implementation of mandatory nonce proof-of-work. 

These measures are intended to disrupt the effectiveness of Dark Skippy and similar attacks by introducing new fields into the PSBT process, thereby strengthening the overall security of the signing workflow. The co-founder of Frostsnap, a prominent figure in the cybersecurity community, has emphasized the importance of ongoing discussions and the implementation of mitigation strategies to address this new threat. 

The researchers behind the report have also called upon readers and industry experts to provide feedback on the proposed mitigation measures, underlining the collaborative effort needed to safeguard the ecosystem. In a related issue, a data analytics company has highlighted a new type of scam involving QR codes. In these scams, attackers deceive victims by suggesting over-the-counter transactions and offering lower rates than those provided by legitimate crypto market services. 

The scammers often offer TRX as a fee for long-term cooperation and initiate a USDT payment to build trust with the victim. They then request a small payment as a test, using it as a means to access the victim's wallet. The company, Bitrace, conducted an experiment using an empty wallet and the QR code provided by a victim. The scan led to a third-party website that requested a repayment amount. Once the victim confirmed the transaction, the scammers were able to steal the wallet's authorization and transfer all the funds from the victim’s account. 

Bitcoin wallet vulnerabilities have led to significant financial losses for users in the past. In August 2023, cybersecurity firm Slowmist reported that over $900,000 worth of Bitcoin had been stolen due to a flaw in the Libbitcoin explorer library. Similarly, in November of the same year, Unciphered revealed that $2.1 billion worth of Bitcoin held in old wallets might be at risk of being drained by attackers exploiting a flaw in the bitcoin wallet software. These incidents underscore the critical need for enhanced security measures and vigilant monitoring to protect digital assets.

Decrypting DoNex: The Flaw That Brought Down a Ransomware Empire

Decrypting DoNex: The Flaw That Brought Down a Ransomware Empire

DoNex Ransomware Encryption: Flaw in Cryptographic Schema

Experts uncovered a critical flaw in the encryption schema of the DoNex ransomware, including all variations and predecessors. Since March 2024, they've worked with law enforcement to give a decryptor to affected DoNex victims covertly.

The cryptographic vulnerability was widely discussed at Recon 2024, compelling the researchers to reveal the problem and its ramifications publically.

The Vulnerability

Avast researchers discovered that the DoNex ransomware went through many rebrandings after its original identification as Muse in April 2022. Subsequent revisions of DoNex included a rebrand to a reported Fake LockBit 3.0 in November 2022, followed by DarkRace in May 2023, and lastly DoNex in March 2024. 

Since April 2024, the team has discovered no further copies, and the ransomware group's public TOR address remained dormant, implying that DoNex's evolution and rebranding efforts may have ended.

How It Works

The DoNex malware uses a complicated encryption method. During execution, the CryptGenRandom function generates an encryption key. This key creates a ChaCha20 symmetric key, which is later used to encrypt files.

Following encryption, the symmetric key is encrypted with RSA-4096 and appended to the impacted file. Files up to 1 MB are encrypted in their whole, whilst larger files are encrypted in block segments. An XOR-encrypted configuration file stores the ransomware's configuration, as well as information on whitelisted extensions, files, and services to terminate.

While the researchers have not described the specific process they used to understand the decryption, more information about the same cryptographic flaw is available in files related to the Recon 2024 event lecture titled "Cryptography is hard: Breaking the DoNex ransomware." The event was hosted by Gijs Rijnders, a malware reverse engineer and cyber threat intelligence specialist of the Dutch National Police.

Implications

DoNex particularly targeted victims in the United States, Italy, and Belgium with tailored attacks. The researchers confirmed that the leaked DoNex decryptor can decrypt all forms of the DoNex ransomware, including earlier versions.

Victims of the DoNex ransomware can identify an attack based on the ransom note left by the software. Although several varieties of DoNex (Fake LockBit, DarkRace, and DoNex) create different ransom notes, they all have the same layout.

  • Victim Relief: Victims no longer need to rely on paying the ransom to regain access to their files. The decryptor provides a straightforward solution.
  • Public Disclosure: The flaw was publicly discussed at the Recon 2024 conference, leading to the official release of details and the decryptor. Transparency is crucial in the fight against ransomware.
  • Ongoing Vigilance: While this breakthrough is significant, it’s essential to remain vigilant. Cybercriminals adapt quickly, and new variants may emerge. Regular backups and robust security practices remain crucial.