Threat Advisory

HoneyMyte APT Deploys Signed Kernel-Mode Driver for Stealthy CoolClient Backdoor

Threat: Malware
Threat Actor Name: Mustang Panda
Threat Actor Type: Nation-Sponsored or State-Sponsored
Targeted Region: Asia, Russia
Alias: Stately Taurus, Camaro Dragon, Red Lich, TA416, Temp.Hex, HoneyMyte, PKPLUG, Tantalum, Bronze President, UAC-0084, Earth Preta
Threat Actor Region: China
Targeted Sector: Technology & IT
Criticality: High
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EXECUTIVE SUMMARY:

The HoneyMyte APT group's CoolClient backdoor has been upgraded with a kernel-mode Windows rootkit, enhancing its stealth capabilities. The malware is deployed as a secondary backdoor after an initial PlugX infection and targets organizations across Asia and Russia. It supports features such as keylogging, clipboard theft, credential harvesting, file management, system reconnaissance, and plugin-based extensions. The new variant can deploy a signed kernel-mode driver as a Windows service, communicate with it through IOCTL requests, and hide the CoolClient process, protect related files and registry entries, and prevent them from being inspected or modified.

The malware follows a multi-stage execution chain, with each component performing a distinct role during execution. The first stage loader, a malicious library, decrypts and loads the next stage into memory, while the second-stage DLL, a malicious file, prepares the execution environment before the malware transitions into its injected process. The command handler remains largely unchanged from previous CoolClient variants, with one notable difference: the malware now injects into a malicious executable instead of a malicious executable. Persistence is established through a scheduled task that launches a malicious executable with SYSTEM privileges during system startup.[/subscribe_to_unlock_form]

EXECUTIVE SUMMARY:

The HoneyMyte APT group's CoolClient backdoor has been upgraded with a kernel-mode Windows rootkit, enhancing its stealth capabilities. The malware is deployed as a secondary backdoor after an initial PlugX infection and targets organizations across Asia and Russia. It supports features such as keylogging, clipboard theft, credential harvesting, file management, system reconnaissance, and plugin-based extensions. The new variant can deploy a signed kernel-mode driver as a Windows service, communicate with it through IOCTL requests, and hide the CoolClient process, protect related files and registry entries, and prevent them from being inspected or modified.

The malware follows a multi-stage execution chain, with each component performing a distinct role during execution. The first stage loader, a malicious library, decrypts and loads the next stage into memory, while the second-stage DLL, a malicious file, prepares the execution environment before the malware transitions into its injected process. The command handler remains largely unchanged from previous CoolClient variants, with one notable difference: the malware now injects into a malicious executable instead of a malicious executable. Persistence is established through a scheduled task that launches a malicious executable with SYSTEM privileges during system startup.[emaillocker id="1283"]

The user-mode component follows an execution path that includes persistence, UAC bypass, registry modifications, and process injection. The driver deployment routine begins by decrypting a malicious file, verifying that it has sufficient privileges to install a kernel-mode driver, extracting an embedded LZMA-compressed driver from a malicious file, decompressing it, and writing it to disk as a malicious file. Once the driver is loaded, CoolClient establishes communication with it through IOCTL requests, initializing the driver by issuing three DeviceIoControl requests.

THREAT PROFILE:

Tactic Technique Id Technique Sub-technique
Persistence T1543.003 Create or Modify System Process Windows Service
Persistence T1547.001 Boot or Logon Autostart Execution Registry Run Keys / Startup Folder
Defence Evasion T1036.005 Masquerading Match Legitimate Resource Name or Location
Defence Evasion T1070.004 Indicator Removal File Deletion
Defence Evasion T1574.001 Hijack Execution Flow DLL
Collection T1560.001 Archive Collected Data Archive via Utility
Command and control T1071.001 Application Layer Protocol Web Protocols
Command and control T1573.001 Encrypted Channel Symmetric Cryptography

MBC MAPPING:

Objective Behavior ID Behavior
Persistence F0012 Registry Run Keys / Startup Folder
Anti-Static Analysis E1027 Obfuscated Files or Information
Defense Evasion F0004 Disable or Evade Security Tools
Command & Control B0030 C2 Communication
Impact B0022 Remote Access

REFERENCES:

The following reports contain further technical details:

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