Pressure is mounting on Instructure, the company behind Canvas, as cybercriminals threaten to leak a trove of sensitive data they claim was stolen during a prolonged cyberattack on the widely used education tech platform.
Widespread outages left schools, students and teachers temporarily unable to access critical data late last week after the company took Canvas offline following additional malicious activity, including a defacement of the platform’s login page. By Friday, the company said Canvas — a central hub for K-12 and university coursework, exams, grades and communication — was back online and fully operational.
ShinyHunters, a decentralized crew of prolific cybercriminals affiliated with The Com, claimed responsibility for the attack on its data leak site and is attempting to extort the company for an unknown ransom amount. Instructure hasn’t confirmed the existence of a ransom demand and declined to answer questions about its response.
The threat group initially set a deadline of May 6 — four days after Instructure previously said the incident was contained soon after it disclosed the attack — claiming it stole 3.65 terabytes of data spanning 275 million records across 8,809 school systems.
When that deadline passed without payment, ShinyHunters escalated its pressure on the company by “injecting an extortion message directly into the Canvas login pages of roughly 330 institutions, and pivoted to school-by-school extortion with a current deadline of May 12,” Cynthia Kaiser, senior vice president of Halcyon’s Ransomware Research Center, told CyberScoop.
“The scope makes this one of the largest single education-sector exposures we’ve tracked,” she added.
The additional public pressure prompted Infrastructure to take Canvas offline, disrupting schoolwork and access to critical systems nationwide.
Instructure CEO Steve Daly apologized over the weekend for the company’s inconsistent communication and deficient public response to the cyberattack.
“Over the past few days, many of you dealt with real disruption. Stress on your teams. Missed moments in the classroom. Questions you couldn’t get answered. You deserved more consistent communication from us, and we didn’t deliver it. I’m sorry for that,” he said in a statement.
Daly acknowledged that the attack, which remains under investigation aided by CrowdStrike, exposed usernames, email addresses, course names, enrollment information and messages. He insisted that course content, submissions and credentials were not compromised.
The temporary but widespread disruption caused has spurred broad concern across the education sector as ransomware experts and threat hunters continue to track developments. The cyberattack also caught the attention of lawmakers on Capitol Hill.
The House Homeland Security Committee on Monday published a letter to Daly seeking a briefing with him or a senior leader at Instructure by May 21.
“The recurrence of an intrusion within days of an initial breach disclosure, and Instructure’s apparent failure to fully remediate the underlying vulnerabilities during that window, raise serious questions about the company’s incident response capabilities and its obligations to the institutions and individuals whose data it holds,” House Homeland Security Chairman Andrew Garbarino, R-N.Y., wrote in the letter to Daly.
The committee wants to learn more about the “circumstances of both intrusions, the the nature and volume of data accessed, the steps Instructure has taken and is taking to contain the threat and notify affected institutions, and the adequacy of the company’s coordination with federal law enforcement and the Cybersecurity and Infrastructure Security Agency,” he added.
CISA did not describe the extent of its involvement in Instructure’s response. “CISA is aware of a potential cyber incident affecting Canvas. As the nation’s cyber defense agency, we provide voluntary support and cybersecurity services to organizations in responding to and recovering from incidents,” Chris Butera, the agency’s acting executive assistant director for cybersecurity, said in a statement.
Instructure’s timeline of the attack has changed and remains incomplete. The company said it first detected unauthorized activity in Canvas on April 29 and immediately revoked the attacker’s access and initiated an incident response. Researchers not directly involved with the formal investigation said ShinyHunters gained access to Canvas at least a few days earlier.
The follow-on malicious activity on May 7 — the defacement of public login pages — was tied to the same incident, the company said.
“We have since confirmed that the unauthorized actor carried out this activity by exploiting an issue related to our Free-For-Teacher accounts. This is the same issue that led to the unauthorized access the prior week. As a result, we have made the difficult decision to temporarily shut down Free-For-Teacher accounts,” the company said in an updated post about the incident.
Instructure did not answer questions about the vulnerability or explain how attackers intruded its systems. The company said it also revoked privileged credentials and access tokens for affected systems, rotated internal keys, restricted token creation pathways, and deployed additional security controls and monitoring.
Canvas is fully operational and safe to use, the company said, adding that CrowdStrike has reviewed known indicators of compromise and “found no evidence that the threat actor currently has access to the platform.”
Access still remains spotty and unavailable for some Canvas users as school districts restore the platform in phases after conducting their own internal checks.
Halcyon published an alert about the attack Friday, including a screenshot of the message that some school staff, guardians and students encountered before Instructure took the learning management system offline.
ShinyHunters threatened Instructure and all affected schools to contact the threat group and reach a resolution by end of day Tuesday. The cybercrime group, which has a “known pattern of removing victim entries once communications and negotiations have started,” removed Instructure from its data leak site after it defaced the Canvas login pages, Halcyon said.
ShinyHunters is a notorious data theft extortion group that previously hit major cloud platforms, including Salesforce and Snowflake, via voice phishing, credential theft and supply-chain attacks.
“Historically, their claims of compromise typically hold up, but they often exaggerate the impact, scale, and type of data stolen,” Kaiser said.
Education is a recurring and consistent target for cybercriminals. Researchers at Halcyon tracked more than 250 ransomware attacks on education institutions globally last year. Yet, the attack on Canvas stands apart from most of these attacks because of its widespread use and downstream impact.
“This is student, parent, and staff data, including minors, which creates downstream phishing and impersonation risk that will outlast the immediate incident,” Kaiser said.
“By compromising a shared platform used across thousands of schools, ShinyHunters hit the entire education sector in one move, which is the same playbook Clop ran against Oracle EBS customers last fall,” she added. “Among 2026 incidents against critical infrastructure, this is at or near the top for education-sector impact, and it highlights a trend of third-party software vendors now being part of an attack surface, and causing cascading effects across an entire sector.”
Cybersecurity professionals focused on ransomware and data theft extortion consistently encourage victims to not pay ransoms, but they also often acknowledge that companies have to make tough decisions based on their own interests and the security of their customers or users caught up in the aftermath.
Allison Nixon, chief research officer at Unit 221B, said the threat group claiming responsibility for the attack should not be trusted.
“They are claiming they will delete the data after they are paid, and if they are not paid that they will leak the data,” she told CyberScoop. “This is in line with the past data extortion scams run by the same and related Com actors, who have made false statements to victims and to the public in the past.”
Instructure hasn’t indicated what it plans to do as part of any effort to prevent the leak of stolen data.
Daly — a longtime security executive who was previously CEO at Ivanti — ended his mea culpa with a pledge to improve communications and provide a summary of a forensics report soon.
“Last week, we made a call to get the facts right before speaking publicly. That instinct isn’t wrong, but we got the balance wrong. We focused on fact-finding and went quiet when you needed consistent updates. You’ve been clear about that, and it’s fair feedback. We will change that moving forward,” he said.
“Rebuilding trust takes time,” Daly added. “We’re going to earn it back through consistent action and honest communication.”
Bitdefender rolled out new functionality in Bitdefender GravityZone, a unified cybersecurity platform that provides prevention, protection, detection, and response capabilities for organizations of all sizes. These features are consistent with our multi-layered security strategy and are intended to ease the workload of security analysts, administrators, and users.
An ongoing data extortion attack targeting the widely-used education technology platform Canvas disrupted classes and coursework at school districts and universities across the United States today, after a cybercrime group defaced the service’s login page with a ransom demand that threatened to leak data from 275 million students and faculty across nearly 9,000 educational institutions.
A screenshot shared by a reader showing the extortion message that was shown on the Canvas login page today.
Canvas parent firm Instructure responded to today’s defacement attacks by disabling the platform, which is used by thousands of schools, universities and businesses to manage coursework and assignments, and to communicate with students.
Instructure acknowledged a data breach earlier this week, after the cybercrime group ShinyHunters claimed responsibility and said they would leak data on tens of millions of students and faculty unless paid a ransom. The stated deadline for payment was initially set at May 6, but it was later pushed back to May 12.
In a statement on May 6, Instructure said the investigation so far shows the stolen information includes “certain identifying information of users at affected institutions, such as names, email addresses, and student ID numbers, as well as as messages among users.” The company said it found no evidence the breached data included more sensitive information, such as passwords, dates of birth, government identifiers or financial information.
The May 6 update stated that Canvas was fully operational, and that Instructure was not seeing any ongoing unauthorized activity on their platform. “At this stage, we believe the incident has been contained,” Instructure wrote.
However, by mid-day on Thursday, May 7, students and faculty at dozens of schools and universities were flooding social media sites with comments saying that a ransom demand from ShinyHunters had replaced the usual Canvas login page. Instructure responded by pulling Canvas offline and replacing the portal with the message, “Canvas is currently undergoing scheduled maintenance. Check back soon.”
“We anticipate being up soon, and will provide updates as soon as possible,” reads the current message on Instructure’s status page.
While the data stolen by ShinyHunters may or may not contain particularly sensitive information (ShinyHunters claims it includes several billion private messages among students and teachers, as well as names, phone numbers and email addresses), this attack could hardly have come at a worse time for Instructure: Many of the affected schools and universities are in the middle of final exams, and a prolonged outage could be highly damaging for the company.
The extortion message that greeted countless Canvas users today advised the affected schools to negotiate their own ransom payments to prevent the publication of their data — regardless of whether Instructure decides to pay.
“ShinyHunters has breached Instructure (again),” the extortion message read. “Instead of contacting us to resolve it they ignored us and did some ‘security patches.'”
A source close to the investigation who was not authorized to speak to the press told KrebsOnSecurity that a number of universities have already approached the cybercrime group about paying. The same source also pointed out that the ShinyHunters data leak blog no longer lists Instructure among its current extortion victims, and that the samples of data stolen from Canvas customers were removed as well. Data extortion groups like ShinyHunters will typically only remove victims from their leak sites after receiving an extortion payment or after a victim agrees to negotiate.
Dipan Mann, founder and CEO of the security firm Cloudskope, slammed Instructure for referring to today’s outage as a “scheduled maintenance” event on its status page. Mann said Shiny Hunters first demonstrated they’d breached Instructure on May 1, prompting Instructure’s Chief Information Security Officer Steve Proud to declare the following day that the incident had been contained. But Mann said today’s attack is at least the third time in the past eight months that Instructure has been breached by ShinyHunters.
In a blog post today, Mann noted that in September 2025, ShinyHunters released thousands of internal University of Pennsylvania files — donor records, internal memos, and other confidential materials — through what the Daily Pennsylvanian and other outlets later determined was, in part, a Canvas/Instructure-mediated access path.
“Penn was the named victim,” Mann wrote. “Instructure was the mechanism. The incident was treated as a Penn-specific story by most of the national press and quietly handled by Instructure as a customer-specific matter. That framing was wrong then. It is dramatically more wrong in light of the May 2026 events, which now look like the planned escalation of an attack pattern that ShinyHunters had been working against Instructure’s environment for at least eight months prior. The September 2025 Penn breach was the proof of concept. The May 1, 2026 incident was the production run. The May 7, 2026 recompromise was ShinyHunters demonstrating publicly that the May 2 ‘containment’ did not happen.”
In February, a ShinyHunters spokesperson told The Daily Pennsylvanian that Penn failed to pay a $1 million ransom demand. On March 5, ShinyHunters published 461 megabytes worth of data stolen from Penn, including thousands of files such as donor records and internal memos.
ShinyHunters is a prolific and fluid cybercriminal group that specializes in data theft and extortion. They typically gain access to companies through voice phishing and social engineering attacks that often involve impersonating IT personnel or other trusted members of a targeted organization.
Last month, ShinyHunters relieved the home security giant ADT of personal information on 5.5 million customers. The extortion group told BleepingComputer they breached the company by compromising an employee’s Okta single sign-on account in a voice phishing attack that enabled access to ADT’s Salesforce instance. BleepingComputer says ShinyHunters recently has taken credit for a number of extortion attacks against high-profile organizations, including Medtronic, Rockstar Games, McGraw Hill, 7-Eleven and the cruise line operator Carnival.
The attack on Canvas customers is just one of several major cybercrime campaigns being launched by ShinyHunters at the moment, said Charles Carmakal, chief technology officer at the Google-owned Mandiant Consulting. Carmakal declined to comment specifically on the Canvas breach, but said “there are multiple concurrent and discrete ShinyHunters intrusion and extortion campaigns happening right now.”
Cloudskope’s Mann said what happens next depends largely on whether Instructure’s customers — the universities, K-12 districts, and education ministries paying for Canvas — choose to apply pressure or absorb the breach quietly.
“The history of education-vendor incidents suggests the path of least resistance is the second one,” he concluded.
Update, May 8, 11:05 a.m. ET: Instructure has published an incident update page that includes more information about the breach. Instructure said its Canvas portal is functioning normally again, and that the hackers exploited an issue related to Free-for-Teacher accounts.
“This is the same issue that led to the unauthorized access the prior week,” Instructure wrote. “As a result, we have made the difficult decision to temporarily shut down Free-for-Teacher accounts. These accounts have been a core part of our platform, and we’re committed to resolving the issues with these accounts.”
Instructure said affected organizations were notified on May 6.
“If your organization is affected, Instructure will contact your organization’s primary contacts directly,” the update states. “Please don’t rely on third-party lists or social media posts naming potentially affected organizations as those lists aren’t verified. Instructure will confirm validated information through direct outreach to all affected organizations.”
Update, May 11, 10:16 p.m. ET: Instructure posted an update saying they paid their extortionists in exchange for a promise to destroy the stolen data. “The data was returned to us,” the update reads. “We received digital confirmation of data destruction (shred logs). We have been informed that no Instructure customers will be extorted as a result of this incident, publicly or otherwise.”
A federal judge sentenced a Latvian national to 102 months in prison for his involvement in a series of ransomware attacks for more than two years prior to his arrest in 2023, the Justice Department said Monday.
Deniss Zolotarjovs, a resident of Moscow at the time, helped an organization led by former leaders of the Conti ransomware group extort payments from more than 54 companies.
The 35-year-old was mostly tasked with putting pressure on the crew’s victims. In one case, Zolotarjovs urged co-conspirators to leak or sell children’s health records stolen from a pediatric healthcare company and ultimately sent a collection of sensitive data to “hundreds of patients,” according to court records.
The ransomware crew identified itself in ransom notes under multiple names during Zolotarjovs’ involvement, including Conti, Karakurt, Royal, TommyLeaks, SchoolBoys Ransomware, Akira and others.
Zolotarjov and his co-conspirators extorted nearly $16 million in confirmed ransom payments from their victims. Officials estimate the group’s crimes resulted in hundreds of millions of dollars in losses, not including the psychological and future financial exposure confronting tens of thousands of people whose personal data was stolen.
“Deniss Zolotarjovs helped his ransomware gang profit from hacks of dozens of companies, and even on a government entity whose 911 system was forced offline,” A. Tysen Duva, assistant attorney general of the Justice Department’s Criminal Division, said in a statement.
Officials said Zolotarjovs searched for points of leverage after researching victim companies and analyzing stolen data. Many of the victims impacted during his active participation between June 2021 and August 2023 were based in the United States.
Zolotarjov was arrested in the country of Georgia in December 2023 and extradited to the United States in August 2024. He pleaded guilty to money laundering and wire fraud in July 2025.
“Cybercriminals might think they are invulnerable by hiding behind anonymizing tools and complex cryptocurrency patterns while they attack American victims from non-extradition countries,” Dominick S. Gerace II, U.S. attorney for the Southern District of Ohio, said in a statement. “But Zolotarjovs’s prosecution shows that federal law enforcement also has a global reach, and we will hold accountable bad actors like Zolotarjovs, who will now spend significant time in prison.”
The Russian ransomware crew was prolific and spread across multiple teams, relying on companies registered in Russia, Europe and the United States to conceal its operations. Authorities said the group included former Russian law enforcement officers whose connections allowed members to access Russian government databases to harass detractors and identify potential new recruits.
Conti was among the most prolific ransomware groups globally for a time, impacting hundreds of critical infrastructure providers, Costa Rica’s government in 2022, and ultimately leading the State Department to offer a $10 million reward for information related to Conti’s leaders. The group was notoriously resilient, bouncing back with new infrastructure and hitting new targets after a massive leak exposed chats between the group’s members in 2022.
Conti disbanded later that year, but members of the Cyrillic-language group rebranded under three subgroups: Zeon, Black Basta and Quantum, which quickly rebranded to Royal, before rebranding again to BlackSuit in 2024.
Two former cybersecurity professionals who moonlighted as cybercriminals, committing a series of ransomware attacks in 2023, were each sentenced to four years in prison, the Justice Department said Thursday.
Ryan Clifford Goldberg and Kevin Tyler Martin previously pleaded guilty to one of three charges brought against them in December and faced up to 20 years behind bars.
Goldberg, who was a manager of incident response at Sygnia, and Martin, a ransomware negotiator at DigitalMint at the time, collaborated with Angelo John Martino III to attack victim computers and networks and use ALPHV, also known as BlackCat, ransomware to extort payments.
“These defendants exploited specialized cybersecurity knowledge not to protect victims, but to extort them,” Jason A. Reding Quiñones, U.S. attorney for the Southern District of Florida, said in a statement. “They used ransomware to lock down critical systems, steal sensitive data, and pressure American businesses into paying to regain access to their own information.”
Victims impacted by the attacks Goldberg and Martin participated in over a six-month period in 2023 included a medical company based in Florida, a pharmaceutical company based in Maryland, a California doctor’s office, an engineering company based in California and a drone manufacturer in Virginia.
“They harmed important firms who were providing medical and engineering services. They played hardball with them, going so far as to cause the leak of patient data from a doctor’s office victim,” A. Tysen Duva, assistant attorney general of the Justice Department’s criminal division, said in a statement.
“These were supposed to be cybersecurity specialists who did good and helped businesses and people. Instead, they used their high-level cyber skills to feed their greed. Ransomware attackers like this should be punished and removed from society to serve their lawful sentences so they cannot harm others,” Duva added.
Goldberg and Martin received identical sentences for their crimes, despite significant differences surrounding their initial arrests. Martin was arrested without incident in October and freed on bond later that month.
Goldberg fled the country in June, 10 days after he was interviewed by the FBI. He was arrested Sept. 22 and ordered to remain in custody pending trial due to flight risk.
Goldberg and his wife boarded a one-way flight to Paris from Atlanta on June 27 and remained in Europe until Sept. 21. When Goldberg flew directly from Amsterdam to Mexico City, he was arrested upon landing and deported to the United States.
“When Goldberg sought to flee abroad and escape prosecution, the FBI tracked him through 10 countries, demonstrating the lengths we will go to hold cyber criminals accountable and protect victims,” Brett Leatherman, assistant director of the FBI’s Cyber Division, said in a statement.
The cases against Golberg, Martin and their co-conspirator Martino showcase an extreme, albeit rare, example of the dark underbelly of ransomware negotiation as a practice. The pitfalls of ransomware negotiation are excessive and these backchannel negotiations, which remain largely unscrutinized, can go awry for various reasons.
Goldberg, 40, and Martin, 36, extorted a $1.3 million ransom payment from the medical company with Martino in May 2023, but did not receive ransom payments from their other victims.
Martino’s ransomware scheme went much further and caused significantly more damage, helping accomplices extort a combined $75.3 million in ransom payments. Five of Martino’s victims hired DigitalMint, which assigned the 41-year-old to conduct ransomware negotiations on their clients’ behalf — a rare position he exploited to play both sides.
He pleaded guilty earlier this month to sharing confidential information about victim organizations’ internal negotiating positions and insurance policy limits he gained from his work as a ransomware negotiator to extract the maximum ransom payment for himself and other BlackCat affiliates.
The five U.S.-based victims that hired DigitalMint and unwittingly tapped Martino to allegedly conduct ransomware negotiations with himself and his co-conspirators include a nonprofit and companies in the hospitality, financial services, retail and medical industries. All five of those victims paid a ransom.
Martino surrendered in March to the U.S. Marshals in Miami and was released on a $500,000 bond. He faces up to 20 years in federal prison and is scheduled for sentencing July 9.
Sygnia and DigitalMint are not accused of any knowledge or involvement in the crimes, and both previously said they fired their former employees once federal authorities alerted the companies to their alleged crimes.
ALPHV/BlackCat was a notorious ransomware and extortion group linked to a series of attacks on critical infrastructure providers. The ransomware variant first appeared in late 2021, and was later used in dozens of attacks on organizations in the health care sector.
The group behind the ransomware strain also claimed responsibility for the February 2024 attack on UnitedHealth Group subsidiary Change Healthcare, which paid a $22 million ransom and became the largest health care data breach on record, compromising data on about 190 million people.
A pair of persistent and problematic threat groups affiliated with The Com are actively targeting organizations across multiple critical infrastructure sectors for rapid data theft and extortion attacks, according to CrowdStrike.
The financially-motivated attackers, which CrowdStrike tracks as Cordial Spider and Snarky Spider, have used voice-phishing and social engineering attacks to break into victims’ identity platforms and traverse SaaS environments since at least October 2025, the company said in a report Thursday, which it shared exclusively with CyberScoop prior to release.
Adam Meyers, senior vice president of counter adversary operations at CrowdStrike, said the subgroups composed of native English speakers primarily target U.S.-based organizations in the academic, aviation, retail, hospitality, automotive, financial services, legal and technology sectors.
This “new wave of ecrime threat actors” are closely aligned with Scattered Spider and linked to other subsets of The Com, including SLSH and ShinyHunters, Meyers said.
Because these attacks target identity systems and can expose data in other connected services beyond the initial breach point, it’s difficult to determine how many victims have been caught up in these campaigns.
CrowdStrike’s warning closely follows research Palo Alto Networks’ Unit 42 and the Retail & Hospitality Information Sharing and Analysis Center shared last week about Cordial Spider’s string of attacks targeting organizations in the retail and hospitality industry, among others.
Cordial and Snarky Spider have set lures via voice calls, text messages and emails directing targeting employees to phishing pages posing as their employer’s legitimate single sign-on page or primary identity provider, researchers said.
These phishing pages, which capture credentials, session keys or tokens, depending on the workflow, provide attackers an entry point into systems, which they exploit for widespread access across victims’ entire SaaS ecosystems.
Attackers use these initial hooks to remove and establish multi-factor authentication devices, then delete emails and other alerts that would otherwise warn organizations of potential malicious activity, researchers said.
The data theft for extortion campaigns share striking similarities, but CrowdStrike said the tactics, techniques and procedures for each subgroup are distinct. These variances include hours of operation, different phishing domain providers, preferred operating systems, data leak sites, and the tools or devices they used to register for multi-factor authentication.
The domain for BlackFile, Cordial Spider’s data-leak site, was offline as of Wednesday, according to Meyers.
CrowdStrike declined to put a range on the groups’ extortion demands, but Unit 42 previously said Cordial Spider, which is also tracked as CL-CRI-1116 and UNC6671, are typically in the seven-figure range.
Some victims that didn’t pay extortion demands have been subjected to DDoS attacks, and Snarky Spider has used more aggressive follow-on harassment tactics, including the swatting of victim organizations’ employees, Meyers said.
CrowdStrike said Cordial and Snarky Spider also use residential proxy networks — including Mullvad, Oxylabs, NetNut, 9Proxy, Infatica and NSOCKS — to evade IP-based detection and blend in with typical traffic.
Residential proxy networks, which rely on IP addresses assigned to real home users, can serve a legitimate purpose, but researchers have been warning that unethical or outright criminal operators are abusing these networks to build and support botnets, cybercrime campaigns, espionage and other malicious activity.
Cordial and Snarky Spider haven’t achieved the impact or technical capability of Scattered Spider, but the groups share many commonalities and objectives, Meyers said.
“They’ve kind of taken their playbook and they’re using a lot of their techniques, but we haven’t really seen the technical sophistication demonstrated by them that we saw from Scattered Spider,” he said. “It’s kind of the new generation of Scattered Spider.”
As Linux dominates cloud-native infrastructure and macOS becomes the standard for high-value targets in development and executive leadership, the attack surface is no longer Windows-centric. Modern attack playbooks weaponize Living off the Land (LOTL) binaries–pre-installed, legitimate system tools–to blend malicious activity with normal operations and bypass standard detection telemetry.
For executive leadership, the emergence of Kyber ransomware represents a significant and immediate threat due to its specialized, dual-platform deployment capability targeting mission-critical virtualization infrastructure (VMware ESXi) and core Windows file systems. This cross-platform approach, coupled with effective anti-recovery measures, drastically elevates the risk of a total operational disruption. Organizations should treat Kyber not merely as another ransomware strain, but as a specialized tool capable of causing a complete operational blackout. Recent real-world incidents have demonstrated that this approach can result in large-scale operational impact across enterprise environments.
During a March 2026 incident response engagement, Rapid7 recovered two Kyber ransomware payloads deployed in the same environment, one targeting VMware ESXi infrastructure and the other Windows file servers. This provided a rare opportunity to analyze both variants side by side. In March 2026, Rapid7 recorded over 900 ransomware incidents being publicly reported.
The ESXi variant is specifically built for VMware environments, with capabilities for datastore encryption, optional virtual machine termination, and defacement of management interfaces. The Windows variant, written in Rust, includes a self-described “experimental” feature for targeting Hyper-V.
Despite these differences, both samples share a campaign identifier and Tor-based ransom infrastructure, confirming coordinated cross-platform deployment. Notably, the ransomware’s cryptographic claims are not consistent across variants. The ESXi sample advertises “post-quantum” encryption using Kyber1024, but in practice relies on ChaCha8 with RSA-4096 key wrapping, while the Windows variant does implement the advertised hybrid scheme. As usual, ransom notes prove to be more aspirational than accurate.
Kyber is a relatively new ransomware group that has recently gained visibility. Despite this, public technical analysis of the malware remains limited. The lack of spotlight on the group presented an opportunity to share our findings with the community.
Technical analysis
Kyber is a cross-platform ransomware family targeting Linux/ESXi and Windows environments. Both variants share Tor infrastructure and a campaign ID, but differ in programming language they are written, crypto, and features. While both reference the same encryption scheme in their ransom notes, only the Windows variant appears to implement it as described.
Property
ELF (Linux/ESXi)
PE (Windows)
Language
C++, GCC 4.4.7 (2012)
Rust, MSVC 19.36 / VS2022
Actual crypto
ChaCha + RSA-4096
AES-256-CTR + Kyber1024 + X25519
Note claims
AES + X25519 + Kyber
AES + X25519 + Kyber
Extension
.xhsyw
.#~~~
Ransom note
readme.txt
READ_ME_NOW.txt
VM targeting
Native esxcli
PowerShell Get-VM (experimental)
Anti-recovery
None
11 commands (elevation required)
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In addition, both variants share a common campaign ID and Tor-based infrastructure, including a negotiation portal and leak site, indicating coordinated operations across platforms.
Campaign ID: 5176[REDACTED]
Tor chat: Mlnmlnnrdhcaddwll4zqvfd2vyqsgtgj473gjoehwna2v4sizdukheyd[.]onion
Tor blog: Kyblogtz6k3jtxnjjvluee5ec4g3zcnvyvbgsnq5thumphmqidkt7xid[.]onion
Chat path: /chat/5176[REDACTED]
Linux/ESXi variant
The Linux/ESXi variant SHA-256: 6ccacb7567b6c0bd2ca8e68ff59d5ef21e8f47fc1af70d4d88a421f1fc5280fcis a 64-bit ELF executable, not stripped, written in C++ and statically linked against OpenSSL 1.0.1e-fips.
The sample was developed to target ESXi environments. As shown in Figure 2, the help text for the required path argument explicitly references the datastore path /vmfs/volumes, the root directory in VMware ESXi hosts where VMFS (Virtual Machine File System) datastores are mounted. The malware also relies on ESXi-native tooling esxcli and targets VMware-specific paths and artifacts.
Figure 1: The binary's help text names /vmfs/volumes as the intended target path.
To ensure encryption continues after an SSH session ends, the malware implements a detach flag. When enabled, it forks and exits the parent process, allowing the child to run in the background. The child then calls setsid() to detach from the controlling terminal, avoiding the SIGHUP signal typically sent when a session closes.
This allows the attacker to disconnect safely while encryption of /vmfs/volumes datastores continues uninterrupted in the background.
Targeting VMware
If the vmkill flag is set, the binary enumerates all running VMs before starting encryption. It forks a child process that executes the ESXi-native management command esxcli vm process list, redirecting its output to a temporary file via dup2(). The output is then parsed line by line to extract Display Name and World ID pairs.
If a whitelist is provided via the whitelist argument, matching VMs are skipped. All other VMs are terminated sequentially using esxcli vm process kill type=softworld-id <id>, with the parent process waiting for each shutdown to complete before proceeding.
Two implementation choices stand out here. First, the ransomware uses fork/execlp rather than system(). By calling fork() and then execlp() directly, ransomware developers bypass the shell entirely. This means the arguments are passed as a null-terminated array of strings (argv) directly to the execve system call. If a VM name contained a space or a special character, a system() call might crash or behave unexpectedly, but execlp ensures the command is executed exactly as intended. This suggests the developer is familiar with low-level system programming.
Second, the use of type=soft requests a graceful shutdown rather than a forced termination. This likely reduces the risk of corrupting VM disk state prior to encryption. After issuing shutdown commands, the binary sleeps briefly for about ~2 seconds before continuing, allowing ESXi to complete the operation.
Directory traversal
The malware performs a recursive directory walk to identify targets. Interestingly enough, it drops a readme.txt ransom note into every folder before the encryption routine begins. The traversal logic does not follow symbolic links, as traversing them can lead to unexpected areas of the filesystem. The sample does not implement an extension allowlist. Files are encrypted unless explicitly excluded.
The binary explicitly ignores files with the following extensions or names:
Figure 2: Confirmed exclusion list from protecting in-progress files, already-encrypted files, and VMware system files from double-processing.
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Encryption: marketing vs reality
The ransom note claims that for encryption it uses AES-256-CTR, X25519 and Kyber1024 algorithms.
Figure 3: Ransom note embedded in the ELF binaries claims AES-256-CTR and X25519/Kyber1024 algorithms.
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Our technical analysis, however, says otherwise. Decompilation of the core encryption logic shows the cipher is actually ChaCha8. Two indicators support this conclusion. First, in the ECRYPT_encrypt_bytes subroutine (Figure 5) the loop executes 8 rounds (i = 8; i > 0; i -= 2), and the code applies 32-bit right rotations with constants 16, 20, 24, and 25. These correspond to the standard ChaCha left-rotation constants (16, 12, 8, and 7) defined in RFC 8439.
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Figure 4: IDA decompilation of ECRYPT_encrypt_bytes function
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Second, the ECRYPT_keysetup function (Figure 6) uses the "expand 32-byte k" sigma constant. For 256-bit keys, the malware initializes its state by placing this constant in words 0–3 and the key in words 4–11 — mirroring the standard ChaCha layout.
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Figure 5: IDA decompilation of ECRYPT_keysetup function
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OpenSSL is statically linked but only handles RSA-4096 key wrapping. We did not find any “post-quantum”. The operator likely just copy-pasted the ransom note from a Windows variant that actually supports Kyber1024.
Partial encryption strategy
Partial encryption logic is size-based encryptFilePartly() function.
Files under 1MB: entire file encrypted
Files between 1MB and 4MB: first 1MB encrypted
Files above 4 MB: only a calculated portion of each file is encrypted, with the proportion controlled by size; the program validates this value as 0–100 in main(), and the default observed setting is 10.
This approach significantly reduces encryption time while still rendering large files (e.g., VMDKs) unusable.
Encryption workflow
Each file is encrypted with a unique ChaCha8 key. Before encrypting the file, the binary creates a .locksignal file and renames the original to .processing to prevent concurrency. It then checks the last 535 bytes for a metadata trailer containing the markers KYBER, CDTA, and ATDC. If these are present, the file is skipped as already encrypted.
For new targets, the malware generates a 40-byte key/IV set and wraps it using an embedded RSA-4096 public key. This metadata is appended to the file and verified before encryption begins. A redundant copy is also saved as <file>.cryptdata_backup. Encryption is performed in-place in 1 MB chunks. On success, the file is renamed from .processing to .xhsyw. Any files left with the .processing suffix indicate an interrupted or failed encryption attempt.
Defacing every entry point
Even before encryption, ransomware binary replaces three specific files:
SSH Access replaces /etc/motd (Message of the Day), displaying the ransom note immediately to anyone logging in via SSH.
Web Management replaces the VMware web UI index pages at both /usr/lib/vmware/hostd/docroot/index.html and the Host Client interface at /usr/lib/vmware/hostd/docroot/ui/index.html.
Whether an administrator logs in via SSH or hits the web management portal, they are immediately met with the ransom note. On non-ESXi systems where these paths don't exist, the rename fails gracefully and execution continues.
Figure 6: Execution log from REMnux test: defacement fails gracefully on non-ESXi, encryption proceeds.
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Windows variant
The Windows sample SHA-256: 45bff0df2c408b3f589aed984cc331b617021ecbea57171dac719b5f545f5e8d is a 64-bit PE executable written in Rust and compiled with MSVC (VS2022). Much like the ESXi variant, the Windows binary as well is not packed, obfuscated, or even stripped. It retains full Rust panic strings and cargo dependency paths, including the build path C:\Users\user\.cargo\registry\src\index.crates.io-6f17d22bba15001f.
Additionally, the binary’s version flag reveals the project name as win_encryptor 1.0.
Figure 7: Ransomware's CLI interface
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The Windows binary exposes a minimal CLI (Figure 8), requiring the path argument to specify the target directory. It also includes system flag which is self-described as "experimental" and intended to enforce a hard-stop on Hyper-V virtual machines.
Ransomware initializes full runtime initialization, even if invoked with just help flag. It aggregates entropy from four sources: system time, Windows CSPRNG, processor-based entropy via RDRAND, and running process data and producing ~30 KB of randomness to seed an internal AES-CTR DRBG. Unlike typical ransomware, which often relies only on BCryptGenRandom, this strain implements a custom entropy pipeline which suggests the developer cared about key material quality.
After initialization, the binary checks whether it is running with elevated privileges by attempting to acquire SeDebugPrivilege and logs are printed to the console (see Figure 8).
This privilege check determines if the destructive commands will be executed. Without elevation, the binary only does file encryption. With elevation, it unlocks its full toolkit: killing services, modifying the registry, and wiping shadow copies to prevent recovery.
Service termination and anti-recovery
When running with elevated privileges the binary first terminates services matching five patterns: msexchange, vss, backup, veeam, and sqlusing OpenSCManagerA, EnumServicesStatusA, and ControlServiceAPI calls. The malware forces the system locale to en-US before service enumeration. This normalization makes certain that pattern matching for service names remains reliable regardless of the victim's native system language.
It then executes 11 commands via CreateProcessW that you can see in the table below
for /F "tokens=*" %i in ('wevtutil el') do wevtutil cl "%i"
Clear all Windows event logs
11
rd /s /q C:\$Recycle.Bin
Empty the Recycle Bin
Table 2: 11 commands executed by ransomware if it ran with elevated privilege
Hyper-V shutdown
If systemflag is set, the binary enumerates Hyper-V virtual machines via PowerShell before encryption:
Get-VM | select VMId, Name | ConvertTo-Json
Stop-VM -Force -TurnOff
Figure 8: PowerShell commands used for Hyper-V termination.
Each VM is terminated with a "hard stop" (-TurnOff) which forces an abrupt shutdown, releasing file locks so the malware can encrypt. As noted in the CLI help text, the developer currently considers this Hyper-V functionality "experimental."
File encryption workflow
For each file, the binary checks for a prior encryption marker to avoid redundant processing. If the file is locked, the malware uses the Windows Restart Manager to identify and terminate the responsible process. If access is still denied, it modifies the file’s permissions (ACL) to Everyone:FullControl and clears the read-only attribute. It retries this entire sequence up to three times per file to ensure it can successfully open and encrypt the data.
Once encryption succeeds, the file is renamed with the .#~~~ extension, and a READ_ME_NOW.txt ransom note is dropped in the directory. Each successful operation is logged to the console as Successfully encrypted <file>. File size: <size>. To maintain system stability and to keep the OS bootable, the malware excludes critical system directories and files from encryption listed below:
$recycle.bin,perflog,system volume information,thumb,programdata,appdata,microsoft,netframework,c$, all users
Unlike the Linux variant, this sample actually uses what it claims: Kyber1024 and AES-256-CTR.
The sample uses a hybrid encryption design. The embedded public key is validated against the expected Kyber1024 public key size of 1568 (0x620) bytes.
Figure 11: Public key size check (1,568 bytes / 0x620) with branch to error on mismatch
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Following validation, the sample initializes an AES-256 CTR context using a 32-byte key, which it expands into a 60-word key schedule.
This confirms that Kyber is not used for direct file encryption. Instead, Kyber1024 protects the symmetric key material, while AES-CTR handles bulk data encryption.
Registry artifacts and icon registration
When executed with elevated privileges, the malware assigns a custom icon to encrypted files by registering the .#~~~ extension. It creates C:\fucked_icon\directory, writes processed_file.icon to that location, and configures it in the registry as the default icon.
Figure 12: Regedit output after execution of Kyber with elevated privileges
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The malware executes ie4uinit.exe to refresh the shell icon cache. This forces Windows to display the new icons immediately across the filesystem without a system restart.
Mutex
The choice of the mutex is interesting. The mutex name boomplay[.]com/songs/182988982 is stored as a wide string in .rdata and appears to be a link to a song on Boomplay, which is a legitimate African music streaming platform. We were unable to identify the specific track due to geo-restrictions we could not bypass.
Mitigation guidance
Based on the observed Tactics, Techniques, and Procedures (TTPs), organizations should focus on the following defensive actions:
Harden virtualization infrastructure (T1021.004)
Kyber’s reliance on SSH for ESXi host access and native tooling like esxcli highlights critical control points.
Implement least-privilege access for ESXi shell and SSH, ideally disabling them entirely unless required for maintenance.
Enforce multi-factor authentication (MFA) on all management interfaces and accounts.
Monitor esxcli execution for VM termination (vm process kill) or configuration changes, which are late-stage indicators of compromise.
Kyber uses 11 distinct commands to impair defenses, including VSS deletion and log clearing.
Restrict execution: Prevent unprivileged users from executing command-line utilities like vssadmin.exe, wmic.exe, and wevtutil.exe.
Protect backups: Ensure backups (especially Veeam/SQL targets) are immutable and stored off-host or in segregated network segments that the Windows variant cannot reach, even with elevated privileges. The ransomware explicitly targets these services and file systems.
Detection focus (lateral movement & defacement):
Monitor for defacement artifacts: Actively monitor for changes to VMware's management files (/etc/motd, /usr/lib/vmware/hostd/docroot/index.html, etc.) in ESXi environments.
Custom entropy check: The Windows variant’s custom entropy pipeline suggests an effort to ensure key quality. Analysts should incorporate the provided IOCs (mutex: boomplay[.]com/songs/182988982) and file extensions into their detection rules.
MITRE ATT&CK techniques
ID
Technique
Use
T1486
Data Encrypted for Impact
Primary objective for both variants.
T1485
Data Destruction
Deletion of shadow copies and backups via vssadmin and wmic.
T1489
Service Stop
Terminating ESXi processes and Windows database services.
T1070.001
Indicator Removal: Clear Windows Event Logs
Using wevtutil to clear logs after infection.
T1021.004
Remote Services: SSH
Primary vector for interacting with ESXi hosts.
T1562.001
Impair Defenses: Disable or Modify Tools
Disabling Windows Recovery Environment and boot failure prompts.
Kyber ransomware isn’t a masterpiece of complex code, but it is highly effective at causing destruction. It reflects a shift toward specialization over sophistication. The operators didn’t need custom exploits or zero-days, because they didn’t have to use them. Instead, they simply used the standard ransomware playbook of abusing native tools like esxcli and vssadmin, and it was enough.
The encryption claims in the ransom note aren’t the main story. If anything, they highlight a gap between the campaign's marketing and its execution. The sophistication of the defense must now be measured against the attacker's specialization, not their code complexity. Ignoring Kyber's multi-platform nature is an acceptance of a total operational blackout.
A South Florida man pleaded guilty to conspiring with multiple ransomware affiliates to commit attacks against and extort payments from the same U.S. companies he represented as a ransomware negotiator for DigitalMint in 2023, the Justice Department said Monday.
Angelo John Martino III shared confidential information about victim organizations’ internal negotiating positions and insurance policy limits he gained from his work as a ransomware negotiator to extract the maximum ransom payment for himself and other BlackCat affiliates, according to his plea agreement.
Five of Martino’s victims hired DigitalMint, which assigned the 41-year-old to conduct ransomware negotiations on their clients’ behalf — a rare position he exploited to play both sides. DigitalMint, which is not accused of any knowledge or involvement in the crimes, fired Martino the day after the Justice Department informed the company they were investigating him in April 2025.
The five U.S.-based victims that hired DigitalMint and unwittingly tapped Martino to allegedly conduct ransomware negotiations with himself and his co-conspirators include a nonprofit and companies in the hospitality, financial services, retail and medical industries. All five of those victims paid a ransom.
Prosecutors previously said Martino helped accomplices extort a combined $75.3 million in ransom payments, including a nearly $26.8 million payment from the unnamed nonprofit, and a nearly $25.7 million payment from the unnamed financial services company.
Martino also admitted to conspiring with Kevin Tyler Martin, another former ransomware negotiator at DigitalMint, and Ryan Clifford Goldberg, a former manager of incident response at Sygnia, to deploy BlackCat ransomware, also known as ALPHV, against five additional U.S. companies between April and November 2023.
Goldberg and Martin pleaded guilty in December to participating in a series of ransomware attacks and are scheduled for sentencing April 30.
“Angelo Martino’s clients trusted him to respond to ransomware threats and help thwart and remedy them on behalf of victims,” A. Tysen Duva, assistant attorney general at the Justice Department’s Criminal Division, said in a statement. “Instead, he betrayed them and began launching ransomware attacks himself by assisting cybercriminals and harming victims, his own employer, and the cyber incident response industry itself.”
The case against Martino showcases an extreme, albeit rare, example of the dark underbelly of ransomware negotiation as a practice. The pitfalls of ransomware negotiation are excessive and these backchannel negotiations, which remain largely unscrutinized, can go awry for various reasons.
Officials shared a series of chats Martino held with co-conspirators and his victims that exemplify the lengths he went to betray DigitalMint’s clients and empower his accomplices with crucial tips for a successful negotiation strategy.
DigitalMint did not respond to a request for comment on Martino’s guilty plea.
Negotiation chats exemplify Martino’s crimes
During an incident response with one of his victims, Martino told a BlackCat affiliate the company’s insurance carrier “was only approving small accounts,” according to his plea agreement. “Keep denying our offers and I will let you know once I find out the max the[y] want to pay,” he added.
“We don’t know how you came up with your demand but we are losing money operationally and all of our loans are going to turnover on us this year at double the interest rates,” Martino said in a negotiation chat visible to DigitalMint and the victim organization in the hospitality industry. “We are able to give you $1 million now, which is a very serious offer.”
Following Martino’s instructions, the BlackCat accomplice responded: “Well, you can keep that for the penalties and lawsuits which are coming your way in case we expose you. Time is ticking — we know how much you can pay. Contact your insurance. We know about them also. Stop wasting time.”
That victim company ultimately paid a ransom worth nearly $16.5 million at the time to receive a decryptor and the BlackCat affiliate’s commitment to not publish stolen data. The two other victims Martino represented via DigitalMint at the time paid $6.1 million and $213,000 ransoms for similar commitments.
“Ransomware victims turned to this defendant for help, and he sold them out from the inside,” Jason A. Reding Quiñones, U.S. attorney for the Southern District of Florida, said in a statement.
Martino received a portion of the ransomware payments for his involvement in the conspiracy.
Authorities have seized $10 million in assets and cryptocurrency wallets controlled by Martino. Law enforcement seized multiple vehicles, a food truck and a 29-foot luxury fishing boat that he obtained using proceeds from his crimes.
Officials also seized two properties owned by Martino in Nokomis, Florida, including a bayfront home with an estimated value of $1.68 million and a second single-family home with an estimated value of $396,000.
Martino surrendered in March to the U.S. Marshals in Miami and was released on a $500,000 bond.
“The FBI works every day to dismantle the ransomware ecosystem,” Brett Leatherman, assistant director of the FBI’s Cyber Division, said in a statement. “That includes apprehending key facilitators like Angelo Martino, who abused the trust placed in him as a private sector negotiator by collaborating with ransomware criminals.”
ALPHV/BlackCat was a notorious ransomware and extortion group linked to a series of attacks on critical infrastructure providers. The ransomware variant first appeared in late 2021, and was later used in dozens of attacks on organizations in the health care sector.
The group behind the ransomware strain also claimed responsibility for the February 2024 attack on UnitedHealth Group subsidiary Change Healthcare, which paid a $22 million ransom and became the largest health care data breach on record, compromising data on about 190 million people.
Martino pleaded guilty to conspiracy to obstruct, delay or affect commerce or the movement of any article or commodity in commerce by extortion. He faces up to 20 years in federal prison and is scheduled for sentencing July 9.
Lawmakers at a hearing Tuesday explored ways to beef up punishments for ransomware attacks against hospitals, possibly by labeling them as more severe crimes.
One proposal floated at the House Homeland Security Committee hearing, to treat ransomware attacks as terrorism, is an idea Congress has flirted with before. Another would be to press prosecutors to pursue homicide charges in attacks on hospitals where death resulted — something German authorities also once pondered.
A former top FBI cyber official, Cynthia Kaiser, put forward both ideas at the hearing, a joint meeting of the subcommittees on Border Security and Enforcement and Cybersecurity and Infrastructure Protection on cybercrime, drawing questions and interest from members.
“I believe there are no penalties too severe for individuals that would target our health care system,” said Mississippi Rep. Michael Guest, chair of the border subcommittee, whose home state of Mississippi’s health care clinics closed following a February ransomware attack.
The suggestions stem from a growing focus by ransomware attackers on the health care sector, with incidents doubling from 238 in 2024 to 460 in 2025 according to FBI statistics, making it the top targeted sector.
Kaiser, now senior vice of the Halcyon ransomware research center, said terrorism designations from the State, Treasury and Justice departments could lead to further sanctions, restricted travel and other punishments. Justice Department guidance on homicide charges could clarify its authorities, she said.
“It sounds like the language is there, it just has not been applied in these circumstances,” said Rep. Lou Correa of California, the top Democrat on Guest’s subpanel.
The notion of more closely entwining cyberattacks and terrorism is something both Congress and the executive branch have examined recently.
The fiscal 2025 Senate intelligence authorization bill would have directly linked ransomware to terrorism, although the final version of the bill that became law was less explicit than the original Senate language. The Treasury Department last month asked for public feedback on changing a terrorism risk insurance program to address cyber-related losses.
The Trump administration’s national cyber strategy advocates for taking a more offensive approach to hackers. It released an executive order on cybercrime and fraud the same day it published the strategy. Kaiser said the proposals are in line with those approaches.
Hackers know their attacks could end lives, she said. “They have simply decided these deaths are someone else’s problem,” Kaiser said.
Long-term follow-ups are important, and DataBreaches is glad that Alexander Martin points out that at least one NHS Trust is still impacted by the Qilin ransomware attack on Synnovis in 2024. From his reporting: At South London and Maudsley NHS Foundation Trust (SLaM), pathology systems have not been restored as of publication, with the trust...