January 31, 2024

How Darktrace Defeated SmokeLoader Malware

Read how Darktrace's AI identified and neutralized SmokeLoader malware. Gain insights into their proactive approach to cybersecurity.

Written by

Patrick Anjos

Senior Cyber Analyst

Inside the SOC

Darktrace cyber analysts are world-class experts in threat intelligence, threat hunting and incident response, and provide 24/7 SOC support to thousands of Darktrace customers around the globe. Inside the SOC is exclusively authored by these experts, providing analysis of cyber incidents and threat trends, based on real-world experience in the field.

Written by

Patrick Anjos

Senior Cyber Analyst

Jan 2024

What is Loader Malware?

Loader malware is a type of malicious software designed primarily to infiltrate a system and then download and execute additional malicious payloads.

In recent years, loader malware has emerged as a significant threat for organizations worldwide. This trend is expected to continue given the widespread availability of many loader strains within the Malware-as-a-Service (MaaS) marketplace. The MaaS marketplace contains a wide variety of innovative strains which are both affordable, with toolkits ranging from USD 400 to USD 1,650 [1], and continuously improving, aiming to avoid traditional detection mechanisms.

SmokeLoader is one such example of a MaaS strain that has been observed in the wild since 2011 and continues to pose a significant threat to organizations and their security teams.

How does SmokeLoader Malware work?

SmokeLoader’s ability to drop an array of different malware strains onto infected systems, from backdoors, ransomware, cryptominers, password stealers, point-of-sale malware and banking trojans, means its a highly versatile loader that has remained consistently popular among threat actors.

In addition to its versatility, it also exhibits advanced evasion strategies that make it difficult for traditional security solutions to detect and remove, and it is easily distributed via methods like spam emails or malicious file downloads.

Between July and August 2023, Darktrace observed an increasing trend in SmokeLoader compromises across its customer base. The anomaly-based threat detection capabilities of Darktrace, coupled with the autonomous response technology, identified and contained the SmokeLoader infections in their initial stages, preventing attackers from causing further disruption by deploying other malicious software or ransomware.

SmokeLoader Malware Attack Details

PROPagate Injection Technique

SmokeLoader utilizes the PROPagate code injection technique, a less common method that inserts malicious code into existing processes in order to appear legitimate and bypass traditional signature-based security measures [2] [3]. In the case of SmokeLoader, this technique exploits the Windows SetWindowsSubclass function, which is typically used to add or change the behavior of Windows Operation System. By manipulating this function, SmokeLoader can inject its code into other running processes, such as the Internet Explorer. This not only helps to disguise the malware's activity but also allows attackers to leverage the permissions and capabilities of the infected process.

Obfuscation Methods

SmokeLoader is known to employ several obfuscation techniques to evade the detection and analysis of security teams. The techniques include scrambling portable executable files, encrypting its malicious code, obfuscating API functions and packing, and are intended to make the malware’s code appear harmless or unremarkable to antivirus software. This allows attackers to slip past defenses and execute their malicious activities while remaining undetected.

Infection Vector and Communication

SmokeLoader typically spreads via phishing emails that employ social engineering tactics to convince users to unknowingly download malicious payloads and execute the malware. Once installed on target networks, SmokeLoader acts as a backdoor, allowing attackers to control infected systems and download further malicious payloads from command-and-control (C2) servers. SmokeLoader uses fast flux, a DNS technique utilized by botets whereby IP addresses associated with C2 domains are rapidly changed, making it difficult to trace the source of the attack. This technique also boosts the resilience of attack, as taking down one or two malicious IP addresses will not significantly impact the botnet's operation.

Continuous Evolution

As with many MaaS strains, SmokeLoader is continuously evolving, with its developers regularly adding new features and techniques to increase its effectiveness and evasiveness. This includes new obfuscation methods, injection techniques, and communication protocols. This constant evolution makes SmokeLoader a significant threat and underscores the importance of advanced threat detection and response capabilities solution.

Darktrace’s Coverage of SmokeLoader Attack

Between July and August 2023, Darktrace detected one particular SmokeLoader infection at multiple stages of its kill chain on a customer network. This detection was made possible by Darktrace DETECT’s anomaly-based approach and Self-Learning AI that allows it to identify subtle deviations in device behavior.

One of the key components of this process is the classification of endpoint rarity and determining whether an endpoint is new or unusual for any given network. This classification is applied to various aspects of observed endpoints, such as domains, IP addresses, or hostnames within the network. It thereby plays a vital role in identifying SmokeLoader activity, such as the initial infection vector or C2 communication, which typically involve a device contacting a malicious endpoint associated with SmokeLoader.

The First Signs of Infection SmokeLoader Infection

Beginning in July 2023, Darktrace observed a surge in suspicious activities that were assessed with moderate to high confidence to be associated with SmokeLoader malware.

For example on July 30, a device was observed making a successful HTTPS request to humman[.]art, a domain that had never been seen on the network, and therefore classified as 100% rare by DETECT. During this connection, the device in question received a total of 6.0 KiB of data from the unusual endpoint. Open-source intelligence (OSINT) sources reported with high confidence that this domain was associated with the SmokeLoader C2 botnet.

The device was then detected making an HTTP request to another 100% rare external IP, namely 85.208.139[.]35, using a new user agent. This request contained the URI ‘/DefenUpdate.exe’, suggesting a possible download of an executable (.exe) file. This was corroborated by the total amount of data received in this connection, 4.3 MB. Both the file name and its size suggest that the offending device may have downloaded additional malicious tooling from the SmokeLoader C2 endpoint, such as a trojan or information stealer, as reported on OSINT platforms [4].

Figure 1: Device event log showing the moment when a device made its first connection to a SmokeLoader associated domain, and the use of a new user agent. A few seconds later, the DETECT model “Anomalous Connection / New User Agent to IP Without Hostname” breached.

The observed new user agent, “Mozilla/5.0 (Windows NT 10.0; Win64; x64; Trident/7.0; rv:11.0) like Gecko” was identified as suspicious by Darktrace leading to the “Anomalous Connection / New User Agent to IP Without Hostname” DETECT model breach.

As this specific user agent was associated with the Internet Explorer browser running on Windows 10, it may not have appeared suspicious to traditional security tools. However, Darktrace’s anomaly-based detection allows it to identify and mitigate emerging threats, even those that utilize sophisticated evasion techniques.

This is particularly noteworthy in this case because, as discussed earlier, SmokeLoader is known to inject its malicious code into legitimate processes, like Internet Explorer.

Figure 2: Darktrace detecting the affected device leveraging a new user agent and establishing an anomalous HTTP connection with an external IP, which was 100% rare to the network.

C2 Communication

Darktrace continued to observe the device making repeated connections to the humman[.]art endpoint. Over the next few days. On August 7, the device was observed making unusual POST requests to the endpoint using port 80, breaching the ‘Anomalous Connection / Multiple HTTP POSTs to Rare Hostname’ DETECT model. These observed POST requests were observed over a period of around 10 days and consisted of a pattern of 8 requests, each with a ten-minute interval.

Figure 3: Model Breach Event Log highlighting the Darktrace DETECT model breach ‘Anomalous Connection / Multiple HTTP POSTs to Rare Hostname’.

Upon investigating the details of this activity identified by Darktrace DETECT, a particular pattern was observed in these requests: they used the same user-agent, “Mozilla/5.0 (Windows NT 10.0; Win64; x64; Trident/7.0; rv:11.0) like Gecko”, which was previously detected in the initial breach.

Additionally, they the requests had a constantly changing eferrer header, possibly using randomly generated domain names for each request. Further examination of the packet capture (PCAP) from these requests revealed that the payload in these POST requests contained an RC4 encrypted string, strongly indicating SmokeLoader C2 activity.

Figure4: Advanced Search results display an unusual pattern in the requests made by the device to the hostname humman[.]art. This pattern shows a constant change in the referrer header for each request, indicating anomalous behavior.

Figure 5: The PCAP shows the payload seen in these POST requests contained an RC4 encrypted string strongly indicating SmokeLoader C2 activity.

Unfortunately in this case, Darktrace RESPOND was not active on the network meaning that the attack was able to progress through its kill chain. Despite this, the timely alerts and detailed incident insights provided by Darktrace DETECT allowed the customer’s security team to begin their remediation process, implementing blocks on their firewall, thus preventing the SmokeLoader malware from continuing its communication with C2 infrastructure.

Darktrace RESPOND Halting Potential Threats from the Initial Stages of Detection

With Darktrace RESPOND, organizations can move beyond threat detection to proactive defense against emerging threats. RESPOND is designed to halt threats as soon as they are identified by DETECT, preventing them from escalating into full-blown compromises. This is achieved through advanced machine learning and Self-Learning AI that is able to understand the normal ‘pattern of life’ of customer networks, allowing for swift and accurate threat detection and response.

One pertinent example was seen on July 6, when Darktrace detected a separate SmokeLoader case on a customer network with RESPOND enabled in autonomous response mode. Darktrace DETECT initially identified a string of anomalous activity associated with the download of suspicious executable files, triggering the ‘Anomalous File / Multiple EXE from Rare External Locations’ model to breach.

The device was observed downloading an executable file (‘6523.exe’ and ‘/g.exe’) via HTTP over port 80. These downloads originated from endpoints that had never been seen within the customer’s environment, namely ‘hugersi[.]com’ and ‘45.66.230[.]164’, both of which had strongly been linked to SmokeLoader by OSINT sources, likely indicating the initial infection stage of the attack [5].

Figure 6: This figure illustrates Darktrace DETECT observing a device downloading multiple .exe files from rare endpoints and the associated model breach, ‘Anomalous File / Multiple EXE from Rare External Locations’.

Around the same time, Darktrace also observed the same device downloading an unusual file with a numeric file name. Threat actors often employ this tactic in order to avoid using file name patterns that could easily be recognized and blocked by traditional security measures; by frequently changing file names, malicious executables are more likely to remain undetected.

Figure 7: Graph showing the unusually high number of executable files downloaded by the device during the initial infection stage of the attack. The orange and red circles represent the number of model breaches that the device made during the observed activity related to SmokeLoader infection.

Figure 8: This figure illustrates the moment when Darktrace DETECT identified a suspicious download with a numeric file name.

With Darktrace RESPOND active and enabled in autonomous response mode, the SmokeLoader infection was thwarted in the first instance. RESPOND took swift autonomous action by blocking connections to the suspicious endpoints identified by DETECT, blocking all outgoing traffic, and enforcing a pre-established “pattern of life” on offending devices. By enforcing a patten of life on a device, Darktrace RESPOND ensures that it cannot deviate from its ‘normal’ activity to carry out potentially malicious activity, while allowing the device to continue expected business operations.

Figure 9: A total of 8 RESPOND actions were applied, including blocking connections to suspicious endpoints and domains associated with SmokeLoader.

In addition to the autonomous mitigative actions taken by RESPOND, this customer also received a Proactive Threat Notification (PTN) informing them of potentially malicious activity on their network. This prompted the Darktrace Security Operations Center (SOC) to investigate and document the incident, allowing the customer’s security team to shift their focus to remediating and removing the threat of SmokeLoader.

Conclusion

Ultimately, Darktrace showcased its ability to detect and contain versatile and evasive strains of loader malware, like SmokeLoader. Despite its adeptness at bypassing conventional security tools by frequently changing its C2 infrastructure, utilizing existing processes to infect malicious code, and obfuscating malicious file and domain names, Darktrace’s anomaly-based approach allowed it to recognize such activity as deviations from expected network behavior, regardless of their apparent legitimacy.

Considering SmokeLoader’s wide array of functions, including C2 communication that could be used to facilitate additional attacks like exfiltration, or even the deployment of information-stealers or ransomware, Darktrace proved to be crucial in safeguarding customer networks. By identifying and mitigating SmokeLoader at the earliest possible stage, Darktrace effectively prevented the compromises from escalating into more damaging and disruptive compromises.

With the threat of loader malware expected to continue growing alongside the boom of the MaaS industry, it is paramount for organizations to adopt proactive security solutions, like Darktrace DETECT+RESPOND, that are able to make intelligent decisions to identify and neutralize sophisticated attacks.

Credit to Patrick Anjos, Senior Cyber Analyst, Justin Torres, Cyber Analyst

Appendices

Darktrace DETECT Model Detections

- Anomalous Connection / New User Agent to IP Without Hostname

- Anomalous Connection / Multiple HTTP POSTs to Rare Hostname

- Anomalous File / Multiple EXE from Rare External Locations

- Anomalous File / Numeric File Download

List of IOCs (IOC / Type / Description + Confidence)

- 85.208.139[.]35 / IP / SmokeLoader C2 Endpoint

- 185.174.137[.]109 / IP / SmokeLoader C2 Endpoint

- 45.66.230[.]164 / IP / SmokeLoader C2 Endpoint

- 91.215.85[.]147 / IP / SmokeLoader C2 Endpoint

- tolilolihul[.]net / Hostname / SmokeLoader C2 Endpoint

- bulimu55t[.]net / Hostname / SmokeLoader C2 Endpoint

- potunulit[.]org / Hostname / SmokeLoader C2 Endpoint

- hugersi[.]com / Hostname / SmokeLoader C2 Endpoint

- human[.]art / Hostname / SmokeLoader C2 Endpoint

- 371b0d5c867c2f33ae270faa14946c77f4b0953 / SHA1 / SmokeLoader Executable

References:

[1] https://bazaar.abuse.ch/sample/d7c395ab2b6ef69210221337ea292e204b0f73fef8840b6e64ab88595eda45b3/#intel

[2] https://malpedia.caad.fkie.fraunhofer.de/details/win.smokeloader

[3] https://www.darkreading.com/cyber-risk/breaking-down-the-propagate-code-injection-attack

[4] https://n1ght-w0lf.github.io/malware%20analysis/smokeloader/

[5] https://therecord.media/surge-in-smokeloader-malware-attacks-targeting-ukrainian-financial-gov-orgs

MITRE ATT&CK Mapping

Model: Anomalous Connection / New User Agent to IP Without Hostname

ID: T1071.001

Sub technique: T1071

Tactic: COMMAND AND CONTROL

Technique Name: Web Protocols

‍

Model: Anomalous Connection / Multiple HTTP POSTs to Rare Hostname

ID: T1185

Sub technique: -

Tactic: COLLECTION

Technique Name: Man in the Browser

‍

ID: T1071.001

Sub technique: T1071

Tactic: COMMAND AND CONTROL

Technique Name: Web Protocols

‍

Model: Anomalous File / Multiple EXE from Rare External Locations

ID: T1189

Sub technique: -

Tactic: INITIAL ACCESS

Technique Name: Drive-by Compromise

‍

ID: T1588.001

Sub technique: - T1588

Tactic: RESOURCE DEVELOPMENT

Technique Name: Malware

‍

Model: Anomalous File / Numeric File Download

ID: T1189

Sub technique: -

Tactic: INITIAL ACCESS

Technique Name: Drive-by Compromise

‍

ID: T1588.001

Sub technique: - T1588

Tactic: RESOURCE DEVELOPMENT

Technique Name: Malware

Written by

Patrick Anjos

Senior Cyber Analyst

Inside the SOC

Written by

Patrick Anjos

Senior Cyber Analyst

•

April 17, 2025

Jeffrey Macre

Industrial Security Solutions Architect

•

April 16, 2025

Margaret Cunningham, PhD

Director, Security & AI Strategy, Field CISO

Watch the NIS2 Webinar

Blog

April 24, 2025

The Importance of NDR in Resilient XDR

As threat actors become more adept at targeting and disabling EDR agents, relying solely on endpoint detection leaves critical blind spots.

Network detection and response (NDR) offers the visibility and resilience needed to catch what EDR can’t especially in environments with unmanaged devices or advanced threats that evade local controls.

This blog explores how threat actors can disable or bypass EDR-based XDR solutions and demonstrates how Darktrace’s approach to NDR closes the resulting security gaps with Self-Learning AI that enables autonomous, real-time detection and response.

Threat actors see local security agents as targets

Recent research by security firms has highlighted ‘EDR killers’: tools that deliberately target EDR agents to disable or damage them. These include the known malicious tool EDRKillShifter, the open source EDRSilencer, EDRSandblast and variants of Terminator, and even the legitimate business application HRSword.

The attack surface of any endpoint agent is inevitably large, whether the software is challenged directly, by contesting its local visibility and access mechanisms, or by targeting the Operating System it relies upon. Additionally, threat actors can readily access and analyze EDR tools, and due to their uniformity across environments an exploit proven in a lab setting will likely succeed elsewhere.

Sophos have performed deep research into the EDRShiftKiller tool, which ESET have separately shown became accessible to multiple threat actor groups. Cisco Talos have reported via TheRegister observing significant success rates when an EDR kill was attempted by ransomware actors.

With the local EDR agent silently disabled or evaded, how will the threat be discovered?

What are the limitations of relying solely on EDR?

Cyber attackers will inevitably break through boundary defences, through innovation or trickery or exploiting zero-days. Preventive measures can reduce but not completely stop this. The attackers will always then want to expand beyond their initial access point to achieve persistence and discover and reach high value targets within the business. This is the primary domain of network activity monitoring and NDR, which includes responsibility for securing the many devices that cannot run endpoint agents.

In the insights from a CISA Red Team assessment of a US CNI organization, the Red Team was able to maintain access over the course of months and achieve their target outcomes. The top lesson learned in the report was:

“The assessed organization had insufficient technical controls to prevent and detect malicious activity. The organization relied too heavily on host-based endpoint detection and response (EDR) solutions and did not implement sufficient network layer protections.”

This proves that partial, isolated viewpoints are not sufficient to track and analyze what is fundamentally a connected problem – and without the added visibility and detection capabilities of NDR, any downstream SIEM or MDR services also still have nothing to work with.

Why is network detection & response (NDR) critical?

An effective NDR finds threats that disable or can’t be seen by local security agents and generally operates out-of-band, acquiring data from infrastructure such as traffic mirroring from physical or virtual switches. This means that the security system is extremely inaccessible to a threat actor at any stage.

An advanced NDR such as Darktrace / NETWORK is fully capable of detecting even high-end novel and unknown threats.

Detecting exploitation of Ivanti CS/PS with Darktrace / NETWORK

On January 9th 2025, two new vulnerabilities were disclosed in Ivanti Connect Secure and Policy Secure appliances that were under malicious exploitation. Perimeter devices, like Ivanti VPNs, are designed to keep threat actors out of a network, so it's quite serious when these devices are vulnerable.

An NDR solution is critical because it provides network-wide visibility for detecting lateral movement and threats that an EDR might miss, such as identifying command and control sessions (C2) and data exfiltration, even when hidden within encrypted traffic and which an EDR alone may not detect.

Darktrace initially detected suspicious activity connected with the exploitation of CVE-2025-0282 on December 29, 2024 – 11 days before the public disclosure of the vulnerability, this early detection highlights the benefits of an anomaly-based network detection method.

Throughout the campaign and based on the network telemetry available to Darktrace, a wide range of malicious activities were identified, including the malicious use of administrative credentials, the download of suspicious files, and network scanning in the cases investigated.

Darktrace / NETWORK’s autonomous response capabilities played a critical role in containment by autonomously blocking suspicious connections and enforcing normal behavior patterns. At the same time, Darktrace Cyber AI Analyst™ automatically investigated and correlated the anomalous activity into cohesive incidents, revealing the full scope of the compromise.

This case highlights the importance of real-time, AI-driven network monitoring to detect and disrupt stealthy post-exploitation techniques targeting unmanaged or unprotected systems.

Unlocking adaptive protection for evolving cyber risks

Darktrace / NETWORK uses unique AI engines that learn what is normal behavior for an organization’s entire network, continuously analyzing, mapping and modeling every connection to create a full picture of your devices, identities, connections, and potential attack paths.

With its ability to uncover previously unknown threats as well as detect known threats using signatures and threat intelligence, Darktrace is an essential layer of the security stack. Darktrace has helped secure customers against attacks including 2024 threat actor campaigns against Fortinet’s FortiManager , Palo Alto firewall devices, and more.

Stay tuned for part II of this series which dives deeper into the differences between NDR types.

‍

Credit to Nathaniel Jones VP, Security & AI Strategy, FCISO & Ashanka Iddya, Senior Director of Product Marketing for their contribution to this blog.

About the author

Nathaniel Jones

VP, Security & AI Strategy, Field CISO

Blog

April 22, 2025

Obfuscation Overdrive: Next-Gen Cryptojacking with Layers

man looking at multiple computer screens

Out of all the services honeypotted by Darktrace, Docker is the most commonly attacked, with new strains of malware emerging daily. This blog will analyze a novel malware campaign with a unique obfuscation technique and a new cryptojacking technique.

What is obfuscation?

Obfuscation is a common technique employed by threat actors to prevent signature-based detection of their code, and to make analysis more difficult. This novel campaign uses an interesting technique of obfuscating its payload.

Docker image analysis

The attack begins with a request to launch a container from Docker Hub, specifically the kazutod/tene:ten image. Using Docker Hub’s layer viewer, an analyst can quickly identify what the container is designed to do. In this case, the container is designed to run the ten.py script which is built into itself.

Docker Hub Image Layers, referencing the script ten.py. — Figure 1: Docker Hub Image Layers, referencing the script *ten.py*.

To gain more information on the Python file, Docker’s built in tooling can be used to download the image (docker pull kazutod/tene:ten) and then save it into a format that is easier to work with (docker image save kazutod/tene:ten -o tene.tar). It can then be extracted as a regular tar file for further investigation.

Figure 2: Extraction of the resulting tar file.

The Docker image uses the OCI format, which is a little different to a regular file system. Instead of having a static folder of files, the image consists of layers. Indeed, when running the file command over the sha256 directory, each layer is shown as a tar file, along with a JSON metadata file.

Figure 3: Output of the file command over the sha256 directory.

As the detailed layers are not necessary for analysis, a single command can be used to extract all of them into a single directory, recreating what the container file system would look like:

find blobs/sha256 -type f -exec sh -c 'file "{}" | grep -q "tar archive" && tar -xf "{}" -C root_dir' \;

Figure 4: Result of running the command above.

The find command can then be used to quickly locate where the ten.py script is.

find root_dir -name ten.py

root_dir/app/ten.py

Details of the above ten.py script. — Figure 5: Details of the above *ten.py* script.

This may look complicated at first glance, however after breaking it down, it is fairly simple. The script defines a lambda function (effectively a variable that contains executable code) and runs zlib decompress on the output of base64 decode, which is run on the reversed input. The script then runs the lambda function with an input of the base64 string, and then passes it to exec, which runs the decoded string as Python code.

To help illustrate this, the code can be cleaned up to this simplified function:

def decode(input):
reversed = input[::-1]

decoded = base64.decode(reversed)
decompressed = zlib.decompress(decoded)
return decompressed

decoded_string = decode(the_big_text_blob)
exec(decoded_string) # run the decoded string

This can then be set up as a recipe in Cyberchef, an online tool for data manipulation, to decode it.

Use of Cyberchef to decode the ten.py script. — Figure 6: Use of Cyberchef to decode the *ten.py* script.

The decoded payload calls the decode function again and puts the output into exec. Copy and pasting the new payload into the input shows that it does this another time. Instead of copy-pasting the output into the input all day, a quick script can be used to decode this.

The script below uses the decode function from earlier in order to decode the base64 data and then uses some simple string manipulation to get to the next payload. The script will run this over and over until something interesting happens.

# Decode the initial base64

decoded = decode(initial)
# Remove the first 11 characters and last 3

# so we just have the next base64 string

clamped = decoded[11:-3]

for i in range(1, 100):
# Decode the new payload

decoded = decode(clamped)
# Print it with the current step so we

# can see what’s going on

print(f"Step {i}")

print(decoded)
# Fetch the next base64 string from the

# output, so the next loop iteration will

# decode it

clamped = decoded[11:-3]

Figure 7: Result of the 63rd iteration of this script.

After 63 iterations, the script returns actual code, accompanied by an error from the decode function as a stopping condition was never defined. It not clear what the attacker’s motive to perform so many layers of obfuscation was, as one round of obfuscation versus several likely would not make any meaningful difference to bypassing signature analysis. It’s possible this is an attempt to stop analysts or other hackers from reverse engineering the code. However, it took a matter of minutes to thwart their efforts.

Cryptojacking 2.0?

Figure 8: Cleaned up version of the de-obfuscated code.

The cleaned up code indicates that the malware attempts to set up a connection to teneo[.]pro, which appears to belong to a Web3 startup company.

Teneo appears to be a legitimate company, with Crunchbase reporting that they have raised USD 3 million as part of their seed round [1]. Their service allows users to join a decentralized network, to “make sure their data benefits you” [2]. Practically, their node functions as a distributed social media scraper. In exchange for doing so, users are rewarded with “Teneo Points”, which are a private crypto token.

The malware script simply connects to the websocket and sends keep-alive pings in order to gain more points from Teneo and does not do any actual scraping. Based on the website, most of the rewards are gated behind the number of heartbeats performed, which is likely why this works [2].

Checking out the attacker’s dockerhub profile, this sort of attack seems to be their modus operandi. The most recent container runs an instance of the nexus network client, which is a project to perform distributed zero-knowledge compute tasks in exchange for cryptocurrency.

Typically, traditional cryptojacking attacks rely on using XMRig to directly mine cryptocurrency, however as XMRig is highly detected, attackers are shifting to alternative methods of generating crypto. Whether this is more profitable remains to be seen. There is not currently an easy way to determine the earnings of the attackers due to the more “closed” nature of the private tokens. Translating a user ID to a wallet address does not appear to be possible, and there is limited public information about the tokens themselves. For example, the Teneo token is listed as “preview only” on CoinGecko, with no price information available.

Conclusion

This blog explores an example of Python obfuscation and how to unravel it. Obfuscation remains a ubiquitous technique employed by the majority of malware to aid in detection/defense evasion and being able to de-obfuscate code is an important skill for analysts to possess.

We have also seen this new avenue of cryptominers being deployed, demonstrating that attackers’ techniques are still evolving - even tried and tested fields. The illegitimate use of legitimate tools to obtain rewards is an increasingly common vector. For example, as has been previously documented, 9hits has been used maliciously to earn rewards for the attack in a similar fashion.

Docker remains a highly targeted service, and system administrators need to take steps to ensure it is secure. In general, Docker should never be exposed to the wider internet unless absolutely necessary, and if it is necessary both authentication and firewalling should be employed to ensure only authorized users are able to access the service. Attacks happen every minute, and even leaving the service open for a short period of time may result in a serious compromise.

References

1. https://www.crunchbase.com/funding_round/teneo-protocol-seed--a8ff2ad4

2. https://teneo.pro/

About the author

Nate Bill

Threat Researcher

Your data. Our AI.

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How Darktrace Defeated SmokeLoader Malware

What is Loader Malware?

How does SmokeLoader Malware work?

SmokeLoader Malware Attack Details

PROPagate Injection Technique

Obfuscation Methods

Infection Vector and Communication

Continuous Evolution

Darktrace’s Coverage of SmokeLoader Attack

The First Signs of Infection SmokeLoader Infection

C2 Communication

Darktrace RESPOND Halting Potential Threats from the Initial Stages of Detection

Conclusion

Appendices

Darktrace DETECT Model Detections

List of IOCs (IOC / Type / Description + Confidence)

References:

MITRE ATT&CK Mapping

Why Asset Visibility and Signature-Based Threat Detection Fall Short in ICS Security

Introducing Version 2 of Darktrace’s Embedding Model for Investigation of Security Threats (DEMIST-2)

Enjoying the blog?

More in this series

The Importance of NDR in Resilient XDR

Obfuscation Overdrive: Next-Gen Cryptojacking with Layers

How NDR and Secure Access Service Edge (SASE) Work Together to Achieve Network Security Outcomes

Blog

April 24, 2025

The Importance of NDR in Resilient XDR

Threat actors see local security agents as targets

What are the limitations of relying solely on EDR?

Why is network detection & response (NDR) critical?

Detecting exploitation of Ivanti CS/PS with Darktrace / NETWORK

Unlocking adaptive protection for evolving cyber risks

Blog

April 22, 2025

Obfuscation Overdrive: Next-Gen Cryptojacking with Layers

What is obfuscation?

Docker image analysis

Cryptojacking 2.0?

Conclusion

References