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July 25, 2021

Detecting Lateral Movement in Crypto-Botnets

Explore how crypto botnets move laterally within networks and the implications for cybersecurity and threat detection.
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
Max Heinemeyer
Global Field CISO
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25
Jul 2021

Botnets have increasingly become the vehicle of choice to deliver crypto-mining malware. By infecting various corporate assets such as servers and IoT devices, cyber-criminals can use the collective processing power of hundreds – or thousands – of machines to mine cryptocurrency and spread to further devices.

This blog explores how an Internet-facing server was breached in a company in Singapore. The threat actors used the device to move laterally and deploy crypto-mining software. Within two days, several devices in the company had begun cryptocurrency mining.

Creating the botnet

Only a few days after Darktrace had been installed in a Proof of Value (POV) trial, it detected a server in the company downloading a malicious executable from a rare endpoint, 167.71.87[.]85.

Figure 1: Timeline of the attack.

The server was observed making HTTP connections to a range of rare external endpoints, without a user agent header. The main hostname was t[.]amynx[.]com, a domain on open-source intelligence (OSINT) associated with crypto-mining trojans.

The device initiated repeated external connections to a range of external IPs over the TCP port 445 (SMB). This was followed by an unusually large number of internal connection attempts to a wide range of devices, suggesting scanning activity.

Figure 2: Details for the TCP scanning activity in a similar incident — note the consolidation of six relevant events into one summary.

Growing the botnet

The malware began to move laterally from the initially infected server, predominantly by establishing chains of unsual RDP connections. Subsequently, the server started making external SMB and RPC connections to rare endpoints on the Internet, in an attempt to find further vulnerable hosts.

Other lateral movement activities included the repeated failing attempts to access multiple internal devices over the SMB file-sharing protocol, with a range of different usernames. This implies bruteforce network access, as the threat actor attempted to guess correct account details through trial and error.

Existing tools such as RDP and Windows Service Control reveal that the attacker was employing ‘Living off the Land’ techniques. This makes a system administrator’s job inherently harder, as they must distinguish the malicious use of built-in tools versus their legitimate application.

Crypto-mining begins

Finally, the compromised server completed the lateral movement by transferring suspicious executable files over SMB to multiple internal devices, with names that appear randomly generated (e.g. gMtWAvEc.exe, daSsZhPf.exe) to deploy crypto-mining malware using the Minergate protocol.

Minergate is a public mining pool utilized for several types of cryptocurrency including Bitcoin, Monero, Ethereum, Zcash, and Grin. In recent months, ransomware actors have begun shifting away from Bitcoin towards Monero and other more anonymous cryptocurrences – but crypto-miners have been using altcoins for years.

Figure 3: The graph shows a clear increase in model breaches on a similar device, which easily identifies the time frame for the compromise.

As this was part of a trial, Antigena – Darktrace’s Autonomous Response capability – was not in active mode and so could not take action to stop the initial vector of infection. However, the Antigena model “Antigena / Network / External Threat / Antigena Suspicious File Block” was breached on July 18 at 03:55:45. If active, Antigena would have instantly blocked connections to 167.71.87[.]85 on port 80 for two hours, allowing the security team enough time to remediate the breach.

Crypto-mining malware: All the rage

Crypto-mining attacks are extremely common. Although not as destructive as ransomware, they can have a serious impact on network latency and take a long time to detect and clean up. While the infection remains unnoticed, it provides a backdoor into the victim organization – and could switch from conducting crypto-mining to delivering ransomware at any moment. In this case, it is clear the attacker aimed to create maximum disruption by transferring malicious software with targets such as internal servers and domain controllers.

Darktrace detected every step of the attack without relying on known indicators of threat. Cyber AI Analyst automated the complete investigation process, saving the security team crucial time during the live incident.

Especially with the recent crackdowns on Bitcoin farms in China, underground botnets and cloud-based crypto-mining are likely to become more prominent. As we see more of these intrusions in the near future, AI-powered detection, investigation, and response, will prove critical in defending organizations of all sizes, at all times.

Learn more about crypto-mining malware

IoCs:

IoCComment167.71.87[.]85Malware Download — SHA1: 6a4c477ba19a7bb888540d02acdd9be0d5d3fd02VirusTotalt[.]amynx[.]comHTTP Command and Control – recently created domain with suspicious indicators on OSINT sites (associated with cryptomining trojans)AlienVaultVirusTotallplp[.]ackng[.]comCrypto Currency Mining Activity (Minergate)VirusTotalgMtWAvEc.exedaSsZhPf.exeyAElKPQi.exeExamples of malicious executables

Darktrace model breaches:

  • Antigena / Network / Insider Threat / Antigena Network Scan Block
  • Device / Suspicious Network Scan Activity
  • Device / Large Number of Model Breaches
  • Device / Multiple Lateral Movement Model Breaches (x2)
  • Unusual Activity / Successful Admin Bruteforce Activity
  • Anomalous Connection / SMB Enumeration
  • Antigena / Network / Significant Anomaly / Antigena Controlled and Model Breach (x2)
  • Antigena / Network / External Threat / Antigena Suspicious File Block
  • Compromise / Beacon to Young Endpoint (x4)
  • Device / Possible RPC Lateral Movement
  • Antigena / Network / Insider Threat / Antigena SMB Enumeration Block
  • Compromise / Beaconing Activity To External Rare (x5)
  • Anomalous Server Activity / Denial of Service Activity
  • Antigena / Network / External Threat / Antigena Suspicious Activity Block (x4)
  • Device / Large Number of Connections to New Endpoints
  • Device / Network Scan - Low Anomaly Score
  • Anomalous Connection / New or Uncommon Service Control (x3)
  • Device / New User Agent To Internal Server
  • Device / Anomalous RDP Followed By Multiple Model Breaches (x3)
  • Device / Anomalous SMB Followed By Multiple Model Breaches (x3)
  • Device / SMB Session Bruteforce (x2)
  • Device / Increased External Connectivity
  • Device / Network Scan
  • Compromise / High Volume of Connections with Beacon Score (x5)
  • Unusual Activity / Unusual External Activity (x3)
  • Anomalous Connection / Unusual Admin SMB Session
  • Antigena / Network / Significant Anomaly / Antigena Significant Anomaly from Client Block
  • Compliance / SMB Drive Write (x3)
  • Antigena / Network / Significant Anomaly / Antigena Breaches Over Time Block (x14)
  • Compliance / Internet Facing RDP Server
  • Anomalous Connection / Multiple Failed Connections to Rare Endpoint (x5)
  • Compliance / Outbound RDP (x3)
  • Anomalous Server Activity / Rare External from Server (x5)
  • Compromise / Slow Beaconing Activity To External Rare (x8)
  • Anomalous Server Activity / Outgoing from Server (x2)
  • Device / New User Agent
  • Anomalous Connection / New Failed External Windows Connection (x5)
  • Compliance / External Windows Communications
  • Device / New Failed External Connections (x7)
  • Compliance / Crypto Currency Mining Activity (x9)
  • Compliance / Incoming Remote Desktop (x9)

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
Max Heinemeyer
Global Field CISO

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April 2, 2026

How Chinese-Nexus Cyber Operations Have Evolved – And What It Means For Cyber Risk and Resilience 

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Cybersecurity has traditionally organized risk around incidents, breaches, campaigns, and threat groups. Those elements still matter—but if we fixate on individual incidents, we risk missing the shaping of the entire ecosystem. Nation‑state–aligned operators are increasingly using cyber operations to establish long-term strategic leverage, not just to execute isolated attacks or short‑term objectives.  

Our latest research, Crimson Echo, shifts the lens accordingly. Instead of dissecting campaigns, malware families, or actor labels as discrete events, the threat research team analyzed Chinese‑nexus activity as a continuum of behaviors over time. That broader view reveals how these operators position themselves within environments: quietly, patiently, and persistently—often preparing the ground long before any recognizable “incident” occurs.  

How Chinese-nexus cyber threats have changed over time

Chinese-nexus cyber activity has evolved in four phases over the past two decades. This ranges from early, high-volume operations in the 1990s and early 2000s to more structured, strategically-aligned activity in the 2010s, and now toward highly adaptive, identity-centric intrusions.  

Today’s phase is defined by scale, operational restraint, and persistence. Attackers are establishing access, evaluating its strategic value, and maintaining it over time. This reflects a broader shift: cyber operations are increasingly integrated into long-term economic and geopolitical strategies. Access to digital environments, specifically those tied to critical national infrastructure, supply chains, and advanced technology, has become a form of strategic leverage for the long-term.  

How Darktrace analysts took a behavioral approach to a complex problem

One of the challenges in analyzing nation-state cyber activity is attribution. Traditional approaches often rely on tracking specific threat groups, malware families, or infrastructure. But these change constantly, and in the case of Chinese-nexus operations, they often overlap.

Crimson Echo is the result of a retrospective analysis of three years of anomalous activity observed across the Darktrace fleet between July 2022 and September 2025. Using behavioral detection, threat hunting, open-source intelligence, and a structured attribution framework (the Darktrace Cybersecurity Attribution Framework), the team identified dozens of medium- to high-confidence cases and analyzed them for recurring operational patterns.  

This long-horizon, behavior-centric approach allows Darktrace to identify consistent patterns in how intrusions unfold, reinforcing that behavioral patterns that matter.  

What the data shows

Several clear trends emerged from the analysis:

  • Targeting is concentrated in strategically important sectors. Across the dataset, 88% of intrusions occurred in organizations classified as critical infrastructure, including transportation, critical manufacturing, telecommunications, government, healthcare, and Information Technology (IT) services.  
  • Strategically important Western economies are a primary focus. The US alone accounted for 22.5% of observed cases, and when combined with major European economies including Germany, Italy, Spain and the UK, over half of all intrusions (55%) were concentrated in these regions.  
  • Nearly 63% of intrusions of intrusions began with the exploitation of internet-facing systems, reinforcing the continued risk posed by externally exposed infrastructure.  

Two models of cyber operations

Across the dataset, Chinese-nexus activity followed two operational models.  

The first is best described as “smash and grab.” These are short-horizon intrusions optimized for speed. Attackers move quickly – often exfiltrating data within 48 hours – and prioritize scale over stealth. The median duration of these compromises is around 10 days. It’s clear they are willing to risk detection for short-term gain.  

The second is “low and slow.” These operations were less prevalent in the dataset, but potentially more consequential. Here, attackers prioritize persistence, establishing durable access through identity systems and legitimate administrative tools, so they can maintain access undetected for months or even years. In one notable case, the actor had fully compromised the environment and established persistence, only to resurface in the environment more than 600 days after. The operational pause underscores both the depth of the intrusion and the actor’s long‑term strategic intent. This suggests that cyber access is a strategic asset to preserve and leverage over time, and we observed these attacks most often inin sectors of the high strategic importance.  

It’s important to note that the same operational ecosystem can employ both models concurrently, selecting the appropriate model based on target value, urgency, intended access. The observation of a “smash and grab” model should not be solely interpreted as a failure of tradecraft, but instead an operational choice likely aligned with objectives. Where “low and slow” operations are optimized for patience, smash and grab is optimized for speed; both seemingly are deliberate operational choices, not necessarily indicators of capability.  

Rethinking cyber risk

For many organizations, cyber risk is still framed as a series of discrete events. Something happens, it is detected and contained, and the organization moves on. But persistent access, particularly in deeply interconnected environments that span cloud, identity-based SaaS and agentic systems, and complex supply chain networks, creates a major ongoing exposure risk. Even in the absence of disruption or data theft, that access can provide insight into operations, dependencies, and strategic decision-making. Cyber risk increasingly resembles long-term competitive intelligence.  

This has impact beyond the Security Operations Center. Organizations need to shift how they think about governance, visibility, and resilience, and treat cyber exposure as a structural business risk instead of an incident response challenge.  

What comes next

The goal of this research is to provide a clearer understanding of how these operations work, so defenders can recognize them earlier and respond more effectively. That includes shifting from tracking indicators to understanding behaviors, treating identity providers as critical infrastructure risks, expanding supplier oversight, investing in rapid containment capabilities, and more.  

Learn more about the findings of Darktrace’s latest research, Crimson Echo: Understanding Chinese-nexus Cyber Operations Through Behavioral Analysis, by downloading the full report and summaries for business leaders, CISOs, and SOC analysts here.  

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April 1, 2026

AI-powered security for a rapidly growing grocery enterprise

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Protecting a complex, fast-growing retail organization

For this multi-banner grocery holding organization, cybersecurity is considered an essential business enabler, protecting operations, growth, and customer trust. The organization’s lean IT team manages a highly distributed environment spanning corporate offices, 100+ stores, distribution centers and  thousands of endpoints, users, and third-party connections.

Mergers and acquisitions fueled rapid growth, but they also introduced escalating complexity that constrained visibility into users, endpoints, and security risks inherited across acquired environments.

Closing critical visibility gaps with limited resources

Enterprise-wide visibility is a top priority for the organization, says the  Vice President of Information Technology. “We needed insights beyond the perimeter into how users and devices were behaving across the organization.”

A security breach that occurred before the current IT leadership joined the company reinforced the urgency and elevated cybersecurity to an executive-level priority with a focus on protecting customer trust. The goal was to build a multi-layered security model that could deliver autonomous, enterprise-wide protection without adding headcount.

Managing cyber risk in M&A

Mergers and acquisitions are central to the grocery holding company’s growth strategy. But each transaction introduces new cyber risk, including inherited network architectures, inconsistent tooling, excessive privileges, and remnants of prior security incidents that were never fully remediated.

“Our M&A targets range from small chains with a single IT person and limited cyber tools to large chains with more developed IT teams, toolsets and instrumentation,” explains the VP of IT. “We needed a fast, repeatable, and reliable way to assess cyber risk before transactions closed.”

AI-driven security built for scale, speed, and resilience

Rather than layering additional point tools onto an already complex environment, the retailer adopted the Darktrace ActiveAI Security Platform™ in 2020 as part of a broader modernization effort to improve resilience, close visibility gaps, and establish a security foundation that could scale with growth.

“Darktrace’s AI-driven approach provided the ideal solution to these challenges,” shares the VP of IT. “It has empowered our organization to maintain a robust security strategy, ensuring the protection of our network and the smooth operation of our business.”

Enterprise-wide visibility into traffic  

By monitoring both north-south and east-west traffic and applying Self-Learning AI, Darktrace develops a dynamic understanding of how users and devices normally behave across locations, roles, and systems.

“Modeling normal behavior across the environment enables us to quickly spot behavior that doesn’t fit. Even subtle changes that could signal a threat but appear legitimate at first glance,” explains the VP of IT.

Real-time threat containment, 24/7

Adopting autonomous response has created operational breathing room for the security team, says the company’s Cybersecurity  Engineer.

“Early on, we enabled full Darktrace autonomous mode and we continue to do so today,” shares the IT Security Architect. “Allowing the technology to act first gives us the time we need to investigate incidents during business hours without putting the business at risk.”

Unified, actionable view of security ecosystem

The grocery retailer integrated Darktrace with its existing security ecosystem of firewalls, vulnerability management tools, and endpoint detection and response, and the VP of IT described the adoption process as “exceptionally smooth.”

The team can correlate enterprise-wide security data for a unified and actionable picture of all activity and risk. Using this “single pane of glass” approach, the retailer trains Level 1 and Level 2 operations staff to assist with investigations and user follow-ups, effectively extending the reach of the security function without expanding headcount.

From reactive defense to security at scale

With Darktrace delivering continuous visibility, autonomous containment, and integrated security workflows, the organization has strengthened its cybersecurity posture while improving operational efficiency. The result is a security model that not only reduces risk, but also supports growth, resilience, and informed decision-making at the business level.

Faster detection, faster resolution

With autonomous detection and response, the retailer can immediately contain risk while analysts investigate and validate activity. With this approach, the company can maintain continuous protection even outside business hours and reduce the chance of lateral spread across systems or locations.

Enterprise-grade protection with a lean team

From cloud environments to clients to SaaS collaboration tools, Darktrace provides holistic autonomous AI defense, processing petabytes of the organization’s network traffic and investigating millions of individual events that could be indicative of a wider incident.

Today, Darktrace autonomously conducts the majority of all investigations on behalf of the IT team, escalating only a tiny fraction for analyst review. The impact has been profound, freeing analysts from endless alerts and hours of triage so they can focus on more valuable, proactive, and gratifying work.

“From an operational perspective, Darktrace gives us time back,” says the Cybersecurity Engineer. More importantly, says the VP of IT, “it gives us peace of mind that we’re protected even if we’re not actively monitoring every alert.”

A strategic input for M&A decision-making

One of the most strategic outcomes has been the role of cybersecurity on M&A. 90 days prior to closing a transaction, the security team uses Darktrace alongside other tools to perform a cyber risk assessment of the potential acquisition. “Our approach with Darktrace has consistently identified gaps and exposed risks,” says the VP of IT, including:

  • Remnants of previous incidents that were never fully remediated
  • Network configurations with direct internet exposure
  • Excessive administrative privileges in Active Directory or on critical hosts

While security findings may not alter deal timelines, the VP of IT says they can have enormous business implications. “With early visibility into these risks, we can reduce exposure to inherited cyber threats, strengthen our position during negotiations, and establish clear remediation requirements.”

A security strategy built to evolve with the business

As the holding group expands its cloud footprint, it will extend Darktrace protections into Azure, applying the same AI-driven visibility and autonomous response to cloud workloads. The VP of IT says Darktrace's evolving capabilities will be instrumental in addressing the organization’s future cybersecurity needs and ability to adapt to the dynamic nature of cloud security.

“With Darktrace’s AI-driven approach, we have moved beyond reactive defense, establishing a resilient security foundation for confident expansion and modernization.”

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