Article
Sanctions Against Zservers
Arete Analysis

On February 11th, 2025, the US Treasury Department, along with the UK and Australian governments, sanctioned the bulletproof hosting provider Zservers, their registered company name XHOST Internet Solutions LP, and six administrators for providing support to ransomware groups –particularly LockBit ransomware-as-a-service (RaaS) affiliates. Additionally, on February 12th, law enforcement in the Netherlands seized 127 servers used by Zservers/XHOST following a yearlong investigation of the hosting provider.
What is Bulletproof Hosting?
Bulletproof hosting (BPH) providers are hosting services that offer anonymity from law enforcement. They are part of the cybercrime-as-a-service ecosystem and sell access to servers and infrastructure for operating and conducting cyberattacks and other criminal activity. BPHs market themselves on dark web forums and use techniques in their networks and architecture that make it difficult for law enforcement to identify and track users paying for their services.

Figure 1. BPH advertisement from dark web forums (source: Australian Signals Directorate)
Analyst Comments
To assess these potential sanctions issues accurately, Arete will leverage Autonomous System Numbers (ASNs) associated with the hosting provider and the known cryptocurrency wallets the administrators use. Arete tracks ASNs and hosting providers used by threat actors as part of our robust attribution, tracking, and due diligence processes for compliance with the Department of the Treasury’s Office of Foreign Asset Controls (OFAC) and Anti-Money Laundering (AML) frameworks. As ASN and routing assignments change, Arete will continuously monitor the Zserver/XHOST infrastructure to capture its use by threat actors. Despite its widespread usage, XHOST infrastructure is not often the primary infrastructure leveraged by threat actors and was observed in only 2% of Arete ransomware and extortion engagements to date. Further, the law enforcement seizures of the Zservers and XHOST servers will render most of the currently registered infrastructure unusable by threat actors, further limiting the impact of potential sanctions on current and future engagements.
Sources
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CMS Vulnerability Leads to ClickFix Campaign
Threat actors compromised at least 700 education and technology websites in a recent ClickFix campaign by exploiting a critical SQL injection flaw (CVE-2026-26980) in the Ghost content management system (CMS). Adversaries combined the vulnerability with the ClickFix social engineering tactic to steal admin keys and inject a malicious JavaScript that delivers a fake Cloudflare or CAPTCHA verification pop-up, tricking victims into copying and pasting a malicious command into their systems.
What’s Notable and Unique
Rather than targeting the end user first, this campaign is unique in its initial exploitation of the system, followed by social engineering attempts. This hybrid attack style is likely being leveraged to bypass traditional defenses.
This recent campaign also highlights how trusted web properties can be weaponized at scale and coupled with unpatched CMS vulnerabilities. Rather than using the CMS compromise to perpetrate a single attack, threat actors turned it into a supply-chain attack that ultimately affected over 700 trusted websites.
Analyst Comments
As network defenders and their tools enhance threat detection capabilities, adversaries increasingly seek methods to bypass these defenses. By combining vulnerability exploitation, social engineering techniques, and staging for ancillary attacks, this campaign successfully bypassed traditional defenses and inflicted significant impact. Defending against hybrid cyberattacks requires comprehensive security controls beyond simply patching vulnerabilities. Organizations should focus on limiting movement within the environment, detecting abuse of trusted applications, and preventing end-user manipulation.
Sources
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Threat Actors Leverage Fake JPEG Files for Initial Access
In a recent campaign, researchers observed threat actors using fake JPEG image files as a delivery mechanism to initiate the deployment of additional malicious components. The false JPEG files are typically distributed via phishing emails or other social engineering-based lures, and are actually PowerShell-based malware that deploys a trojanized version of ConnectWise ScreenConnect to establish and maintain persistence in the compromised environment.
What’s Notable and Unique
This campaign leverages JPEG images as the initial lure, where the images are not merely decoys but part of the infection workflow. Victims are typically led to download or open an image that triggers hidden execution logic or redirects them to a payload-delivery sequence that initiates later stages of the intrusion chain.
The attack chain is designed to blend into legitimate environments, making detection more difficult. Execution typically relies on scripted or native Windows components, often including PowerShell or other living-off-the-land binaries, enabling fileless or near-fileless execution and reducing forensic artifacts on disk.
The multistage design ensures that the initial JPEG does not directly contain the full payload but instead triggers retrieval or decryption steps that progressively assemble the final malicious components in memory.
Analyst Comments
This campaign illustrates how threat actors continue to blur the line between legitimate file handling and malicious execution chains, indicating potential overlap with remote management or administrative tooling. The use of JPEG-based staging combined with script-based execution reflects a broader evolution toward a stealth-first intrusion design, in which file formats serve as triggers rather than payload containers.
Sources
OPERATION SILENTCANVAS : JPEG BASED MULTISTAGE POWERSHELL INTRUSION
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