DeadLock Ransomware: Rust-Based Encryptor with Decentralized Recovery Infrastructure on Polygon and Session

DeadLock Ransomware (TL-2026-1981) is a high-severity ransomware operation, first published 2026-08-10. It is attributed to DeadLock ransomware operators with medium confidence, affects Microsoft Windows (desktop and server editions targeted by the, maps to 14 MITRE ATT&CK techniques (T1027, T1059, T1071), and is covered by 9 detection rules and 30 indicators of compromise.

Key facts for TL-2026-1981

Threat ID
TL-2026-1981
Severity
HIGH
Status
ACTIVE
Category
RANSOMWARE
First published
2026-08-10
Last reviewed
2026-08-10
Attribution
DeadLock ransomware operators
Attribution confidence
MEDIUM
Motivation
FINANCIAL
Target sectors
manufacturing, information technology, mining, transportation and logistics, hospitality, consumer goods
Target regions
Europe, russia, Asia-Pacific, North America, 005 - South America, Middle East and Africa
Detection rules
9
Indicators of compromise
30

Malware and tooling in DeadLock Ransomware

Malware and tooling: AnyDesk, DeadLock, INC Ransomware - S1139, AnyDesk

DeadLock is a financially motivated ransomware operation, first observed July 2025, using a Rust-based encryptor (XChaCha20 + Curve25519 ECDH key wrapping via NaCl crypto_box) and double-extortion tactics. It runs decentralized recovery infrastructure spanning nine identical Polygon smart contracts (proxy rotation and blog storage), the Session/Oxen messaging network for victim chat, and Wasabi S3-compatible hosting for leaked data, and has published over 80 victims as of July 2026.

How DeadLock Ransomware works

DeadLock is a Rust-based Windows ransomware encryptor first compiled around June 27, 2025 and observed in active double-extortion operations from July 2025 onward. Each file is encrypted with a per-file ephemeral Curve25519 keypair and a random 32-byte XChaCha20 key/24-byte nonce, wrapped via NaCl crypto_box (XSalsa20-Poly1305) using an operator-controlled recipient key generated through the Windows CryptoAPI; encryption is applied at tiered rates (100%/50%/25%/10%) based on file size, and encrypted files are renamed to <filename>.<UID>.dlock with a cleartext ephemeral public key appended as a footer. Before encrypting, the malware XOR-decrypts an embedded 8-byte configuration blob, checks system language against 18 geofenced language IDs associated with Russia/CIS/Ukraine/Iran-region locales and self-deletes on a match, attempts UAC bypass via randomly named batch scripts invoked with the RunAs verb (up to 10 retries) when not already elevated, and enables six Windows token privileges (SeDebugPrivilege, SeRestorePrivilege, SeBackupPrivilege, SeTakeOwnershipPrivilege, SeAuditPrivilege, SeSecurityPrivilege). It empties the recycle bin on all drives, terminates roughly 40 services and associated processes (Windows Defender, Volume Shadow Copy service, Hyper-V, Active Directory services, backup tools, remote-access utilities) via a configuration-embedded stop list, and separately deploys a PowerShell script that whitelists AnyDesk (the operators' preserved remote-access channel) while stopping 200+ other services and deleting all Volume Shadow Copies. It clears 8 hardcoded Windows Event Log channels via the classic clear-log API and additionally tampers with the registry at HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\WINEVT\Channels, setting Enabled=0 and overwriting ChannelAccess with a restrictive SDDL string, using wevtapi.dll to enumerate and clear both built-in and third-party custom log channels. Directory traversal uses a two-tier exclusion system (pre-traversal skip of user AppData/Program Files/ProgramData, plus during-traversal exclusion of system/boot/config folders), and encryption is performed by 2x-CPU-core worker threads with resource-aware throttling (pausing dispatch above 29% memory or below 30% CPU idle) to preserve system responsiveness during the attack. After encryption, DeadLock generates a custom desktop wallpaper bitmap and registers a custom .dlock file icon via registry, drops a text ransom note (HOW_RECOVER.<UID>.txt) on a second directory pass, deploys an HTML recovery/chat application (RECOVERY_CHAT.<UID>.html) to drive roots and the Desktop, and self-deletes via a batch loop. The RECOVERY_CHAT application is a self-contained, obfuscated-JavaScript browser client implementing a full end-to-end-encrypted chat, a paginated leak-blog viewer, and a file browser without any traditional backend server. Victim identity for chat is derived deterministically (SHA-512 of a generated username/password pair -> Ed25519 keypair -> Curve25519 conversion -> Session-style address with a '05' prefix); messages are encrypted to the recipient's Curve25519 key with NaCl sealed boxes, signed with Ed25519, padded to 160-byte boundaries, and wrapped in an onion-routed protobuf request (PUT /api/v1/message) relayed by a proxy server to Session swarm nodes. Configuration for this recovery layer -- including rotating proxy server addresses and blog content (BBCode posts, image galleries, file attachments) -- is stored and retrieved via free, read-only calls to Polygon blockchain smart contracts rather than conventional DNS infrastructure: a primary/chat-proxy contract (0x8EF7c3e531d871D3B9D559722DE77EB1dEc19dAe, function selector 0x933a9ce8) and a separate blog-storage contract (0x757984507c82c8dA1d3969c535dB5706eEE6426C, function selector 0xd4070542), accessed through six public RPC endpoints for redundancy. Independent blockchain analysis identified nine Polygon contracts sharing identical bytecode (Solidity 0.8.24): eight clones deployed in rapid succession on August 10, 2025 (23:07-23:32 UTC) followed by the main contract on August 11, 2025, with the operator's proxy contract funded with 42 MATIC from a FixedFloat exchange wallet. Seven setProxy calls between August 12-15, 2025 rotated infrastructure, after which the operation went silent for roughly three months before reactivating on November 13, 2025 with a new proxy endpoint. Leaked-data hosting and browsing uses Wasabi (AWS S3-compatible) storage accessed with AWS4-HMAC-SHA256-signed requests and client-side-generated pre-signed download URLs, requiring no backend server. Observed C2/proxy network infrastructure includes an active endpoint at 138.226.236.51 (Ukraine-registered netblock, Frankfurt-hosted, serving /prrq.php) and a prior, now-inactive endpoint at 94.74.164.207 (Iran-registered), alongside Cloudflare-fronted bulletproof hosting at privatenetwork.ltd and several compromised legitimate websites (biggoalsports.co.za, envisionreg.com, nmsneustadtl.ac.at) used as C2 proxies. As of July 2026, the DeadLock leak blog has published claims against more than 80 organizations, with roughly 57% of claimed victims concentrated in the Europe/Russia region and the remainder split across APAC, North America, South America, and the Middle East/Africa; manufacturing organizations make up the largest share of claimed victims, followed by IT, mining, transportation/logistics, hospitality, and consumer goods. Microsoft assesses DeadLock is deployed by multiple, financially motivated affiliate groups, including at least one linked to the Lynx and INC ransomware ecosystems; independent analysis (BinDiff) previously found 48-70.8% function-level code overlap between Lynx and INC samples, indicating Lynx's encryptor was built on purchased/adapted INC source code -- both families also use Curve25519-based key wrapping, aligning with cryptographic choices observed in DeadLock. The combination of blockchain-hosted configuration, onion-routed messaging, and S3-compatible leak-data hosting is intended to make DeadLock's victim-facing recovery/extortion infrastructure resistant to conventional domain seizure and takedown, though it remains dependent on public RPC endpoint availability, proxy uptime, and the underlying storage provider, and its on-chain activity (contract deployments, funding transactions, proxy rotations) is permanently public and auditable, including a traceable link to a FixedFloat exchange wallet.

MITRE ATT&CK techniques used in TL-2026-1981

Defense Evasion

T1027 Obfuscated Files or Information

Execution

T1059 Command and Scripting Interpreter

Command and Control

T1071 Application Layer Protocol; T1219 Remote Access Tools

defense-impairment

T1112 Modify Registry; T1685 Disable or Modify Tools

Privilege Escalation

T1134 Access Token Manipulation; T1548 Abuse Elevation Control Mechanism

Impact

T1489 Service Stop; T1490 Inhibit System Recovery; T1657 Financial Theft

Resource Development

T1583 Acquire Infrastructure; T1584 Compromise Infrastructure

Discovery

T1614 System Location Discovery

Affected products and versions in DeadLock Ransomware

  • Microsoft — Windows (desktop and server editions targeted by the DeadLock encryptor)
    Vulnerable versions: All supported Windows versions reachable by the encryptor

Remediation for DeadLock Ransomware

Immediate actions

  • Block network IOCs 138.226.236.51 and 94.74.164.207, and the /prrq.php C2 path, at the network perimeter/proxy
  • Restrict or closely monitor AnyDesk and other RMM tool usage; alert on unauthorized AnyDesk installs or the arrival of AnyDesk on hosts where it is not an approved tool
  • Enable PowerShell script block logging and constrained language mode to catch service-termination/Volume-Shadow-Copy-deletion scripts
  • Verify offline, immutable, air-gapped backups exist given the malware's Volume Shadow Copy deletion and recycle-bin-emptying behavior

Workarounds

  • Application-allowlist remote-access tools; block or alert on AnyDesk installation/execution unless explicitly authorized for that host
  • Block outbound traffic to known bulletproof-hosting ranges (e.g. privatenetwork.ltd) and monitor for anomalous outbound connections from unrelated compromised third-party websites acting as proxies

Longer-term hardening

  • Deploy EDR with behavioral detection for mass file renaming to the .dlock extension and for wevtapi/Event Log channel-clearing activity
  • Alert on modification of HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\WINEVT\Channels (Enabled/ChannelAccess changes) as a log-tampering indicator
  • Harden against RunAs-based UAC bypass attempts and monitor for anomalous enabling of SeDebugPrivilege/SeRestorePrivilege/SeBackupPrivilege/SeTakeOwnershipPrivilege/SeAuditPrivilege/SeSecurityPrivilege together on a single process
  • Forward Windows Event Logs to a centralized, tamper-resistant SIEM so on-host log clearing cannot erase forensic evidence

Timeline of DeadLock Ransomware

  • Earliest known DeadLock encryptor sample compiled/observed.
  • DeadLock ransomware operation first observed in the wild by security researchers, beginning active double-extortion campaigns.
  • Eight identical-bytecode Polygon smart contract clones deployed in rapid succession (23:07-23:32 UTC) as part of the decentralized recovery infrastructure buildout.
  • Main Polygon chat-proxy smart contract deployed and configured with an initial proxy URL.
  • After seven setProxy infrastructure-rotation calls, the operation goes silent for roughly three months following the last observed sample on August 12, 2025.
  • DeadLock infrastructure reactivates with a new Ukrainian-registered C2 proxy endpoint after the multi-month silence.
  • Group-IB and other outlets publicly report DeadLock's abuse of Polygon smart contracts for C2 proxy rotation.
  • DeadLock data-leak blog observed actively publishing victim listings.
  • ZeroFox flash report documents the DeadLock leak site listing over 80 claimed victims, with manufacturing as the top targeted sector.
  • DeadLock leak blog victim count exceeds 80 published organizations, per Microsoft's subsequent analysis, with over half concentrated in Europe.
  • Microsoft Security Blog publishes a detailed technical breakdown of the Rust-based encryptor and decentralized recovery infrastructure, attributing deployment to multiple affiliates including groups linked to the Lynx and INC ransomware ecosystems.

Sources cited for DeadLock Ransomware

Threats related to DeadLock Ransomware

Detection coverage for TL-2026-1981

As of 2026-08-10, Threadlinqs Intelligence publishes 9 detection rule(s) for TL-2026-1981 across Splunk SPL, Microsoft KQL and Sigma, covering 30 indicator(s) of compromise. The whole corpus is readable without an account; a free account unlocks full detection query text in Splunk SPL, Microsoft KQL and Sigma; paid tiers add raw indicator values, correlation and the MCP server. Threadlinqs MCP server · View plans.

Community OSINT corroboration for TL-2026-1981

1 of this threat's indicators have also been reported by the open-source security community, which observed at least one of them before this report was published. Community sightings are unverified and are kept separate from Threadlinqs' curated indicators. Indicator values, reporters and campaign linkage are available to authenticated Red-tier users.

Further reading

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