Exposing Kandykorn: New Malware from Lazarus Group Targets Crypto Exchanges

Estimated read time 3 min read

Introducing Kandykorn and Sugarload

In a fascinating yet alarming development, Elastic Security Labs has unveiled a novel malware called Kandykorn, coupled with a loader dubbed Sugarload. This duo is like Batman and Robin, but instead of saving the day, they are out to hijack crypto exchanges. The loader, with its sneaky .sld extension, is just the tip of the iceberg when it comes to innovative infiltration techniques. Strangely enough, the exchange that fell victim to this nefarious plot remains unnamed – maybe it was a first date gone wrong?

The Scheme: Posing as Helpful Engineers

According to reports, the artistry of deception began when members of the Lazarus Group posed as blockchain engineers. In a twist of cyber irony, they targeted real engineers from a crypto exchange using the ever-trendy platform Discord. Their opening line? “We’ve designed a profitable arbitrage bot!” Did they use the classic pick-up line, “What’s your favorite cryptocurrency?” We may never know, but it worked. The seduction was complete, and the unwitting engineers downloaded what they believed to be a lucrative tool. Spoiler: It wasn’t.

Malicious Makeover: The Infiltration Process

The deceptive ZIP file that the engineers downloaded contained misleading file names like config.py and pricetable.py. Come on guys, if you’re going to trick someone, at least use cuter names! Upon execution, the program launched innocuous processes and, what a surprise, a malicious one named Watcher.py. This piece of work managed to create a connection to a remote Google Drive; it’s like a bad movie plot – turning a simple storage solution into a portal for digital deviance!

How Sugarload Plays Its Role

The malicious Watcher.py initiated a series of unfortunate events that led to the downloading of Sugarload into the device’s memory. This file had a knack for dodging detection, thanks to a binary packer – like a magician vanishing into thin air. Elastic’s detection just needed to pull a rabbit out of the hat (or snapshot the virtual memory) to discover it was indeed villainous.

Kandykorn’s Capabilities: More Than Just a Sweet Name

Once Sugarload did its thing, it connected to a remote server and downloaded Kandykorn. This malware doesn’t just sit idly; it has a variety of malicious functions at its disposal – think of it as a Swiss Army knife for cybercriminals. Command “0xD3” can list directories, while “resp_file_down” has a more sinister purpose – transferring files from the victim to the attacker’s remote server. This ongoing digital heist could finally explain why your crypto account seems to have a mysterious guest living in it.

Historical Context: A Year of Crypto Attacks

2023 has not been kind to crypto exchanges. Companies like Alphapo, CoinsPaid, and Atomic Wallet have all experienced breaches that resulted in significant losses. It seems Lazarus Group is at the heart of this digital crime wave, including high-profile incidents such as the Coinex and Stake hacks. With the FBI hot on their trail, one can only wonder if these cyber crooks ever thought they could outsmart the authorities.

Conclusion: The Ongoing Threat

Elastic warns that the hunger for crypto heists is not over; the tools and techniques these hackers employ are still evolving. If the digital age were a horror movie, we might just hear the creepy ominous music as cybercriminals continue their exploits. Brace yourselves, crypto enthusiasts – Kandykorn may still be lurking around the corner!

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