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WastedLocker Ransomware Insights

Arete Analysis

Summary

WastedLocker is a new ransomware variant with encryption capabilities that some researchers believe to be linked to the sanctioned “Evil Corp” group. However, Arete’s analysis determined that evidence of the connection is not conclusive.

On December 5th, 2019 the U.S. Department of Justice announced indictments against 17 individuals including 2 Russian nationals Maksim Yakubets and Igor Turashev that were the primary ringleaders of the Russian hacking group known as “Evil Corp”. The Treasury Department Office of Foreign Assets Control (OFAC) followed up with the announcement of sanctions against “Evil Corp”.

Figure 1. “Wanted by FBI” poster of Maksim Yakubets

Figure 2. “Wanted by FBI” poster of Igor Turashev


At least since 2012 the criminal group operated a malware known as “Dridex” (also known as “Bugat” and “Cridex”), which was primarily delivered to victims’ systems through phishing emails. Once infected, the “Dridex” malware was able to steal users’ credentials for online financial accounts and were ultimately leveraged by cyber criminals to transfer money from the victims bank accounts to offshore accounts held by Evil Corp. In 2017 the “Evil Corp” decided to change their methodology and started to release BitPaymer ransomware through Dridex. 
 
Even with the indictments by the US DOJ, “Evil Corp” remained just as active operating as normal. According to the Arete Cyber Threat Intelligence, in recent weeks the number of victims compromised by Dridex grew significantly (i.e. 2-3x times more than the total numbers of Trickbot, Emotet and Qbot victims combined). 

Figure 3. Alleged Evil Corp mastermind Maksim Yakubets stands next to his Lamborghini Huracan

The recent research article by analysts from NCC Group shared a theory that “Evil Corp” group might be behind the WastedLocker ransomware (aka Wasted) which was originally spotted in the wild in May 2020. Based on the NCC Group’s assessment the link between Wasted and Bitpaymer was made based on a few  similarities between the two ransomware variants – i.e. the use of alternative data stream (ADS) and SocGholish fake update framework. Arete conducted research and determined that evidence of the connection between “Evil Corp” group and WastedLocker ransomware variant is not conclusive for 4 main reasons:

  1. Alternate Data Stream (ADS) is often being used by cyber criminals to hide malicious files/scripts inside of legitimate files. This method is not uniquely attributed to Wasted/Bitpaymer ransomware and has been used by other ransomware variants (e.g. TeslaCrypt, CrytoWall, Maze and etc.), at least since 2015. 

  2. SocGholish is a JavaScript-based framework that has been used in “fake updates” attacks and observed downloading Dridex, Azorult InfoStealer, NetSupport Manager RAT, and Chthonic. While the Dridex banking trojan has been directly associated with “Evil Corp” and Bitpaymer, SocGholish doesn’t appear to have an exclusive relationship with this group primarily because cyber criminals have been observed using various malware families to exploit and establish persistence. These cyber criminals are known to change their tactics and many have demonstrated change by adopting other cyber criminals malware, e.g. trojans/RATs have been used in deployments of other ransomware variants – e.g. Azorult was observed in Phobos attacks, NetSupport RAT has been associated with GandCrab attacks in the past.

  3. Dridex trojan was not found on any system for all WastedLocker ransomware matters that Arete has handled to date.

  4. No overlaps in money laundering infrastructure – blockchain analysis of payments show no overlaps in the bitcoin wallets IDs nor the exchanges used by Dridex/Bitpaymer and WastedLocker operators. While Dridex/ Bitpaymer use illegal exchanges in Russia to cash out their earnings, WastedLocker operators primarily use exchanges in Asia. 

    WastedLocker Overview

WastedLocker is a new variant of ransomware that was initially reported in May of this year. The WastedLocker ransomware encrypts files on the victims’ systems using the AES algorithm and appends the file extension .[organization initials] wasted to each file it encrypts. Wasted also generates a separate ransom note for each encrypted file. For each victim, WastedLocker operators create 2 contact email addresses which are listed in ransom notes. The ransom demands also appear to be related to the amount of research the operators have done based on what they believe the victims can afford to pay. In some instances, clients have reported compromised accounts opening financial information during the period of unauthorized access. Unlike some other ransomware variants, the decryption tool for WastedLocker is universal, meaning it will work on every system within the compromised network without requiring a unique decryptor for each system.

Continuing Research

Arete Threat Intelligence continues to work with law enforcement contacts to conduct analysis into WastedLocker. The cybercriminals behind this variant have been quick to identify and infect victims’ systems with ransomware resulting in a devastating blow to the victims’ IT infrastructure and interrupting profitable business operations. The tactics and techniques used by the group have been stealthy and have the entire security community reacting to improve defenses, share indicators, and preemptively secure their perimeters. Research continues into the tools, tactics, and procedures.

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Article

Europol Disrupts AudiA6 Crypto Laundering Service

European authorities have dismantled AudiA6, a major cryptocurrency laundering service linked to ransomware groups and broader cybercriminal networks. Between 2022 and 2025, the platform is believed to have processed over €336 million in illicit funds, enabling threat actors to obscure financial trails and monetize cybercrime proceeds. Its operators are also suspected of running Dark2Web, a dark web forum that facilitated collaboration, services, and connections among cybercriminals globally. This development underscores the expanding role of sophisticated, large-scale cryptocurrency laundering services in sustaining the cybercrime economy, enabling threat actors to obscure illicit funds and evade regulatory controls.

What’s Notable and Unique 

  • Following law enforcement disruption of Cryptex and Garantex, AudiA6 emerged as another platform involved in financial activities linked to ransomware groups. Investigators believe that AudiA6 became a central hub for cybercriminals seeking to launder stolen digital assets while obscuring the transaction trail from authorities.

  • On June 10, 2026, a coordinated operation resulted in two arrests in Georgia, the dismantling of key infrastructure (30+ servers, 25 domains), the freezing or seizure of over €778,000 in crypto, and the takedown of the AudiA6 and Dark2Web platforms. 

Analyst Comments

Ransomware groups and cybercriminal networks are increasingly leveraging sophisticated techniques, including chain-hopping, decentralized exchanges, and mixer-as-a-service platforms, to rapidly move illicit cryptocurrency across multiple blockchains, effectively obscuring transaction trails. Concurrently, the widespread use of fraudulent exchange accounts, mule wallets, and privacy-enhancing tools has elevated cryptocurrency laundering to a core enabler of the cybercrime ecosystem, allowing actors to bypass anti-money-laundering controls at scale. This investigation identified over 6,000 KYC records linked to money-mule accounts, many of which were tied to Russian-speaking intermediaries specifically recruited to facilitate the movement of illicit proceeds. These threat actors systematically used both commercial and domain-controlled email services to establish mule accounts across multiple cryptocurrency platforms. Collectively, these findings underscore the growing scale, coordination, and professionalization of cryptocurrency-enabled crime, highlighting the critical need for sustained, intelligence-led, and internationally coordinated efforts to disrupt these evolving financial ecosystems.

Sources

  • Ransomware gangs cut off from EUR 336 million ‘AudiA6’ crypto laundering pipeline

Article

Threat Actors Leverage AI for EDR Evasion

A threat actor has developed and deployed a ransomware attack toolkit enhanced with AI-assisted development workflows, enabling automated Active Directory (AD) discovery and improved EDR evasion capabilities. The toolkit leverages agent-based AI systems, such as Claude’s Opus and Cursor agents, for iterative malware development, testing, and refinement. 

What’s Notable and Unique 

  • Researchers have highlighted that this toolkit can not only generate ransomware code but also bypass sophisticated security defenses and identify AD networks for malware distribution. 

  • The framework incorporates multiple capabilities, including automated AD discovery and reconnaissance mechanisms, iterative EDR testing environments to refine evasion techniques, and a command-and-control (C2) infrastructure that leverages Telegram APIs and Cloudflare redirectors for stealth. 

  • Additionally, some agents were tasked with checking security research and technical posts for various bypass techniques. The agents recognized what was required for reproduction, extracted the techniques, mapped them to the MITRE ATT&CK knowledge base of adversary behaviors, set up a test lab, carried out the methodology, and reported the results. 

  • After a few repetitions, the modules seemed to avoid nearly all EDR solutions, despite the agent’s initial suggestion of a high failure rate. Although researchers found no evidence that AI was embedded in deployed malware or was operating independently in victim environments, the technology was still used to accelerate the iterative process of developing, testing, and refining payloads against security products, shortening the period between the publication of offensive security research and its practical implementation by threat actors. 

Analyst Comments 

AI-driven tools like this could accelerate the pace and sophistication of ransomware attacks, enabling even relatively inexperienced actors to launch high-impact campaigns. This development underscores the urgent need for security solutions to adapt to AI-assisted threats. Organizations must respond by strengthening detection engineering, improving visibility across environments, and maintaining robust security fundamentals.  

Sources 

  • AI-built ransomware toolkit automates EDR evasion, AD discovery  

  • Pointing a Cursor at evading detection

Article

Arete's 2026 Q1 Crimeware Report

Harness Arete’s unique data and expertise on extortion and ransomware to inform your response to the evolving threat landscape.

Article

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

  • 700+ education and tech websites hijacked in huge ClickFix malware campaign

  • Under the engineering hood: Why Malwarebytes chose WordPress as its CMS

  • Think before you Click(Fix): Analyzing the ClickFix social engineering technique

  • Ghost CMS Vulnerability Exploited to Infect 700 Sites With ClickFix Malware