Tags: babuk, BlueSky Ransomware, Cloud-Delivered Security Services, conti ransomware, Cortex XDR, Investigation and Response, next-generation firewall, Powershell, RedLine infostealer, threat intelligence, URL filtering, WildFire

In our analysis, we found code fingerprints from samples of BlueSky ransomware that can be connected to the Conti ransomware group. In particular, the multithreaded architecture of BlueSky bears code similarities with Conti v3, and the network search module is an exact replica of it.


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According to research done by CloudSEK, PowerShell scripting is used to drop and download BlueSky ransomware from a fake website to encrypt data. After successful encryption, BlueSky Ransomware renames the encrypted files with the file extension .bluesky and drops a ransom note file named # DECRYPT FILES BLUESKY #.txt and # DECRYPT FILES BLUESKY #.html.

Palo Alto Networks customers receive protections from BlueSky ransomware and other types of ransomware through Cortex XDR, the Next-Generation Firewall and cloud-delivered security services including WildFire. The Advanced URL Filtering subscription provides real-time URL analysis and malware prevention for BlueSky ransomware.

If you think you may have been impacted by a cyber incident, the Unit 42 Incident Response team is available 24/7/365. You can also take preventative steps by requesting any of our cyber risk management services.

As shown in Figure 1, BlueSky ransomware is initially dropped by the PowerShell script start.ps1, which is hosted at hxxps://kmsauto[.]us/someone/start.ps1. The initial dropper is Base64-encoded and then DEFLATE-compressed, which is common behavior observed among PowerShell droppers.

Before downloading additional payloads to perform local privilege escalation, the PowerShell script, stage.ps1, determines if it is being executed as a privileged user. If so, it moves to the next step and downloads and executes the ransomware payload. If not, it uses the following techniques to escalate local privileges, depending on the version of the host operating system. If the version of the host operating system is earlier than Windows 10, such as Windows 7, 8 or XP, then the script will download and execute a modified version of the local privilege escalation tool called JuicyPotato. If the host is running Windows 10 or later, then the script will download and execute ghost.exe and spooler.exe to exploit local privilege escalation vulnerabilities CVE-2020-0796 and CVE-2021-1732 respectively.

After gaining additional privileges, stage.ps1 downloads the final BlueSky ransomware payload from hxxps://kmsauto[.]us/someone/l.exe and saves it locally to the filesystem as javaw.exe, attempting to masquerade as a legitimate Windows application. Eventually, the sample executes from the file path %APPDATA%\Microsoft\Windows\Start Menu\Programs\Startup\javaw.exe.

BlueSky drops the ransom note as a text file named # DECRYPT FILES BLUESKY #.txt and an HTML file named # DECRYPT FILES BLUESKY #.html in a local directory where it has encrypted files successfully and renamed them with the file extension .bluesky. The content of # DECRYPT FILES BLUESKY #.html is shown in Figure 3.

BlueSky implements multiple anti-analysis techniques, including string encryption, API obfuscation and anti-debugging mechanisms, allowing it to obfuscate Windows API function names and use indirect calls for resolving APIs. Additionally, BlueSky encodes API names using DJB hashing functions as shown in Figure 4, hindering malware analysis.

BlueSky generates a unique user ID by computing the MD5 hash over the combined Volume Information, Machine GUID, Product ID and Install Date values, as shown in Figure 5. Furthermore, it uses the same ID for generating the mutex Global\.

It creates the registry key HKCU\Software\ to store registry entries completed, RECOVERY BLOB and x25519_public to fingerprint its ransomware operations. Once the encryption process is completed, the registry entry completed is set with a value of 1. RECOVERY BLOB is a fingerprint identifier for the compromised organization, which is encrypted by the ChaCha20 encryption algorithm. The structure of the RECOVERY BLOB is shown in Table 1.

All samples we observed related to BlueSky ransomware were hosted at an active domain named kmsauto[.]us. When hunting for more samples related to BlueSky ransomware, we observed that several malware samples associated with the RedLine infostealer were hosted on the same domain. Although we did not find any code overlap between RedLine and BlueSky ransomware, similarities in the initial stages were observed, as both these families use a PowerShell downloader as the initial vector.

Ransomware authors are adopting modern advanced techniques such as encoding and encrypting malicious samples, or using multi-staged ransomware delivery and loading, to evade security defenses. BlueSky ransomware is capable of encrypting files on victim hosts at rapid speeds with multithreaded computation. In addition, the ransomware adopts obfuscation techniques, such as API hashing, to slow down the reverse engineering process for the analyst.

Palo Alto Networks customers with Cortex XDR, the Next-Generation Firewall and Advanced URL Filtering benefit from protections against the attacks discussed in this article. Additionally, the malicious indicators (domains, URLs and hashes) can be prevented with our DNS Security and WildFire services.

If you have cyber insurance, you can request Unit 42 by name. You can also take preventative steps by requesting any of our cyber risk management services, such as our Ransomware Readiness Assessment. 152ee80cbc

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