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When Threat Actors Fly Under the Radar: Vatet, PyXie and Defray777 ![Clock Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-clock.svg) 26 min read Related Products [![Managed Threat Hunting icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2024/06/unit42_RGB_logo_Icon_Color.png)Managed Threat Hunting](https://unit42.paloaltonetworks.com/product-category/managed-threat-hunting/ "Managed Threat Hunting")[![Unit 42 Incident Response icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2024/06/unit42_RGB_logo_Icon_Color.png)Unit 42 Incident Response](https://unit42.paloaltonetworks.com/product-category/unit-42-incident-response/ "Unit 42 Incident Response") * ![Profile Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-profile-grey.svg) By: * [Ryan Tracey](https://unit42.paloaltonetworks.com/author/ryan-tracey/) * [Drew Schmitt](https://unit42.paloaltonetworks.com/author/drew-schmitt/) * ![Published Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-calendar-grey.svg) Published:November 6, 2020 * ![Tags Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-category.svg) Categories: * [Malware](https://unit42.paloaltonetworks.com/category/malware/) * [Ransomware](https://unit42.paloaltonetworks.com/category/ransomware/) * [Threat Actor Groups](https://unit42.paloaltonetworks.com/category/threat-actor-groups/) * ![Tags Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-tags-grey.svg) Tags: * [Defray777](https://unit42.paloaltonetworks.com/tag/defray777/) * [Prying Libra](https://unit42.paloaltonetworks.com/tag/prying-libra/) * [PyXie](https://unit42.paloaltonetworks.com/tag/pyxie/) * [Vatet](https://unit42.paloaltonetworks.com/tag/vatet/) * [![Download Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-download.svg)](https://unit42.paloaltonetworks.com/vatet-pyxie-defray777/?pdf=download&lg=en&_wpnonce=f95c25a748 "Click here to download") * [![Print Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-print.svg)](https://unit42.paloaltonetworks.com/vatet-pyxie-defray777/?pdf=print&lg=en&_wpnonce=f95c25a748 "Click here to print") Share![Down arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/down-arrow.svg) * ![Link Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-share-link.svg) * [![Link Email](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-sms.svg)](mailto:?subject=When%20Threat%20Actors%20Fly%20Under%20the%20Radar:%20Vatet,%20PyXie%20and%20Defray777&body=Check%20out%20this%20article%20https%3A%2F%2Funit42.paloaltonetworks.com%2Fvatet-pyxie-defray777%2F "Share in email") * [![Facebook Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-fb-share.svg)](https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Funit42.paloaltonetworks.com%2Fvatet-pyxie-defray777%2F "Share in Facebook") * [![LinkedIn Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-linkedin-share.svg)](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Funit42.paloaltonetworks.com%2Fvatet-pyxie-defray777%2F&title=When%20Threat%20Actors%20Fly%20Under%20the%20Radar:%20Vatet,%20PyXie%20and%20Defray777 "Share in LinkedIn") * [![Twitter Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-twitter-share.svg)](https://twitter.com/intent/tweet?url=https%3A%2F%2Funit42.paloaltonetworks.com%2Fvatet-pyxie-defray777%2F&text=When%20Threat%20Actors%20Fly%20Under%20the%20Radar:%20Vatet,%20PyXie%20and%20Defray777 "Share in Twitter") * [![Reddit Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-reddit-share.svg)](https://www.paloaltonetworks.com//www.reddit.com/submit?url=https%3A%2F%2Funit42.paloaltonetworks.com%2Fvatet-pyxie-defray777%2F&ts=markdown "Share in Reddit") * [![Mastodon Icon](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-mastodon-share.svg)](https://mastodon.social/share?text=When%20Threat%20Actors%20Fly%20Under%20the%20Radar:%20Vatet,%20PyXie%20and%20Defray777%20https%3A%2F%2Funit42.paloaltonetworks.com%2Fvatet-pyxie-defray777%2F "Share in Mastodon") ## Linking Vatet, PyXie and Defray777 While researching these malware families, we found that there were several consistencies between Vatet, PyXie and Defray777 that strongly suggest that all three malware families were created, and are currently maintained by, the same financially motivated threat group. #### **PDB Path Reuse** As we saw with the Defray777 decryptors, there are numerous victims that have been impacted by Defray777. However, these decryptors also show some overlap with PyXie. One of the decryptors we analyzed shares a common path with earlier versions of PyXie and its Cobalt Mode downloader. |---------------------|---------------------------------------------------------------| | Defray777 Decryptor | Z:\\coding\\pyproject\\compiled\\ransom\\ransom.pdb | | PyXie | z:\\coding\\pyproject\\python\_static\_2.7.15\\ | | Cobalt Mode | Z:\\coding\\pyproject\\compiled\\cobalt\_mode\\cobalt\_mode.pdb | *Table 19. PDB paths shared between Defray777, PyXie and Cobalt Mode.* Additionally, some of the variants of Vatet we observed also have overlapping PDB paths. |-----------|-----------------------------------------------------------------------------------------| | Tetris | C:\\Users\\1\\Downloads\\tetris-game-master\\Release\\TetrisGame\_zjy.pdb | | Notepad | C:\\Users\\1\\Downloads\\notepad-master\\Debug\\notepad.pdb | | Rainmeter | C:\\Users\\1\\Downloads\\rainmeter-master\\x32-Release\\Obj\\Library\\Rainmeter.pdb | | Rainmeter | C:\\Users\\1\\Downloads\\rainmeter-master\\x32-Release\\Obj\\Application\\Rainmeter.pdb | | Notepad++ | C:\\Users\\1\\Downloads\\notepad-plus-plus-master\\PowerEditor\\bin\\npp.pdb | *Table 20. PDB paths shared between Vatet variants.* #### **String Encryption** During our research, we observed that the method of string encryption in each of the variants was consistent. Defray777 uses the same string encryption that was used in PyXie. Additionally, the same string encryption methodology was observed in the Tetris variant of Vatet loader. ![Defray777 uses the same string encryption that was used in PyXie. Additionally, the same string encryption methodology was observed in the Tetris variant of the Vatet loader.](https://unit42.paloaltonetworks.com/wp-content/uploads/2020/11/word-image-39.png) Figure 26. Defray777 string decryption example. #### **Creating Mutexes** Defray777 uses the same Mutex routine as the updated PyXie sample we analyzed, including the DEFAULTCOMPNAME fallback. One thing Defray777 does differently is that it omits the step where the computed MD5 hash is XOR'd with 0x2. ![Defray777 uses the same Mutex routine as the updated PyXie samples we analyzed, including the DEFAULTCOMPNAME fallback. One thing Defray777 does differently is that it omits the step where the computed MD5 hash is XOR'd with 0x2.](https://unit42.paloaltonetworks.com/wp-content/uploads/2020/11/word-image-40.png) Figure 27. The Defray777 mutex creation process. ## Conclusion Since 2018, a financially-motivated threat group has been using a *combination* of Vatet loader, PyXie RAT and Defray777 ransomware to target organizations in the healthcare, education, government and technology industries without drawing attention to themselves. They've only been a blip on the radar. We have exposed this group's desire to use open source tools as a means for the Vatet loader. We have shown how PyXie is used to conduct reconnaissance and find and exfiltrate data. We have also uncovered how this group uses Cobalt Strike to deliver Defray777 into memory to encrypt files, causing catastrophic damage to their victims. We hope that by shining more light on this group of threat actors, we can help disrupt their ability to conduct ransomware operations. Now that they are on the radar, we must aim to keep them there. Palo Alto Networks customers are protected from this threat in the following ways: * All samples in this report have a malicious verdict in [WildFire](https://www.paloaltonetworks.com/products/secure-the-network/wildfire). * [Cortex XDR](https://www.paloaltonetworks.com/cortex/endpoint-protection) detects these threats. * Command and Control infrastructure has been classified as malicious in [URL Filtering](https://www.paloaltonetworks.com/products/threat-detection-and-prevention/web-security). * AutoFocus tags are available for additional context: * [PyXie](https://autofocus.paloaltonetworks.com/#/tag/Unit42.PyXie) * [RansomX](https://autofocus.paloaltonetworks.com/#/tag/Unit42.RansomX) (also known as Defray777) * [Vatet](https://autofocus.paloaltonetworks.com/#/tag/Unit42.Vatet) Continue reading: [Indicators of Compromise](https://unit42.paloaltonetworks.com/vatet-pyxie-defray777/5) Back to top ### Tags * [Defray777](https://unit42.paloaltonetworks.com/tag/defray777/ "Defray777") * [Prying Libra](https://unit42.paloaltonetworks.com/tag/prying-libra/ "Prying Libra") * [PyXie](https://unit42.paloaltonetworks.com/tag/pyxie/ "PyXie") * [Vatet](https://unit42.paloaltonetworks.com/tag/vatet/ "Vatet") [Threat Research Center](https://unit42.paloaltonetworks.com "Threat Research") [Next: Windows XP, Server 2003 Source Code Leak Leaves IoT, OT Devices Vulnerable](https://unit42.paloaltonetworks.com/windows-xp-server-2003-source-code-leak/ "Windows XP, Server 2003 Source Code Leak Leaves IoT, OT Devices Vulnerable") ### Table of Contents * ### Related Articles * [Why LaZagne Makes D-Bus API Vigilance Crucial](https://unit42.paloaltonetworks.com/lazagne-leverages-d-bus/ "article - table of contents") * [Ransomware Threat Assessments: A Companion to the 2021 Unit 42 Ransomware Threat Report](https://unit42.paloaltonetworks.com/ransomware-threat-assessments/ "article - table of contents") ## Related Resources ![Pictorial representation of a magnifying glass illuminating a glowing orange circular digital circuit interface on a dark, high-tech background.](https://unit42.paloaltonetworks.com/wp-content/uploads/2026/09/04_Myth-Busting_Overview_1920x900-786x368.jpg) [![category icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2025/08/Insights-icon-white.svg)Insights](https://unit42.paloaltonetworks.com/category/insights/) September 16, 2026 [#### Atomic macOS (AMOS) Stealer Activity](https://unit42.paloaltonetworks.com/atomic-macos-amos-stealer-activity/) * [MacOS](https://unit42.paloaltonetworks.com/tag/macos/ "macOS") * [Threat intelligence](https://unit42.paloaltonetworks.com/tag/threat-intelligence/ "threat intelligence") * [Unit 42](https://unit42.paloaltonetworks.com/tag/unit-42/ "Unit 42") [Read now ![Right arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-right-arrow-withtail.svg)](https://unit42.paloaltonetworks.com/atomic-macos-amos-stealer-activity/ "Atomic macOS (AMOS) Stealer Activity") ![Pictorial representation of post-exploitation identity misuse in SPIFFE/SPIRE. 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A close-up of a computer circuit board with a central microchip is depicted. Red digital data streams in the form of glowing binary numbers and arrows appear to flow in and out of the chip, symbolizing data processing and transfer. The scene is illuminated with a futuristic blue and red glow.](https://unit42.paloaltonetworks.com/wp-content/uploads/2026/09/04_Malware_Category_1920x900-6-786x368.jpg) [![category icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2024/06/icon-threat-research.svg)Threat Research](https://unit42.paloaltonetworks.com/category/threat-research/) September 9, 2026 [#### Untracked Nightmares: The Threats Hiding Behind Commodity Infrastructure](https://unit42.paloaltonetworks.com/ppi-network-malware-campaign-analysis/) * [ARKTunnel](https://unit42.paloaltonetworks.com/tag/arktunnel/ "ARKTunnel") * [C2](https://unit42.paloaltonetworks.com/tag/c2/ "C2") * [CL-CRI-1171](https://unit42.paloaltonetworks.com/tag/cl-cri-1171/ "CL-CRI-1171") [Read now ![Right arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-right-arrow-withtail.svg)](https://unit42.paloaltonetworks.com/ppi-network-malware-campaign-analysis/ "Untracked Nightmares: The Threats Hiding Behind Commodity Infrastructure") ![Pictorial representation of attackers using AI tools to target Latin American organizations. 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The scene is illuminated by bright urban lights and digital-like particles, creating a dynamic and futuristic atmosphere.](https://unit42.paloaltonetworks.com/wp-content/uploads/2026/09/AdobeStock_768915868-2-1-786x373.jpg) [![category icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2024/06/icon-threat-research.svg)Threat Research](https://unit42.paloaltonetworks.com/category/threat-research/) September 3, 2026 [#### Attackers Expose Ongoing AI Tool Use Targeting Organizations in Latin America](https://unit42.paloaltonetworks.com/ai-tool-use-targeting-latam-orgs/) * [Agentic AI](https://unit42.paloaltonetworks.com/tag/agentic-ai/ "Agentic AI") * [ChatGPT](https://unit42.paloaltonetworks.com/tag/chatgpt/ "ChatGPT") * [CL-CRI-1131](https://unit42.paloaltonetworks.com/tag/cl-cri-1131/ "CL-CRI-1131") [Read now ![Right arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-right-arrow-withtail.svg)](https://unit42.paloaltonetworks.com/ai-tool-use-targeting-latam-orgs/ "Attackers Expose Ongoing AI Tool Use Targeting Organizations in Latin America") ![Pictorial representation of vishing campaigns in Microsoft Teams. A digital image of a skull formed by blue binary code on a black background, with scattered ones and zeros and digital noise, symbolizes how stealthy prompt injection attacks can exploit AI logic to bypass security controls.](https://unit42.paloaltonetworks.com/wp-content/uploads/2026/08/01_Malware_Category_1920x900-5-786x368.jpg) [![category icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2024/06/icon-threat-research.svg)Threat Research](https://unit42.paloaltonetworks.com/category/threat-research/) August 31, 2026 [#### Spring Ring: An Inside Look at Voice Phishing Campaigns in Microsoft Teams](https://unit42.paloaltonetworks.com/spring-ring-voice-phishing-campaigns/) * [Cloaked Ursa](https://unit42.paloaltonetworks.com/tag/cloaked-ursa/ "Cloaked Ursa") * [Entra ID](https://unit42.paloaltonetworks.com/tag/entra-id/ "Entra ID") * [Microsoft Teams](https://unit42.paloaltonetworks.com/tag/microsoft-teams/ "Microsoft Teams") [Read now ![Right arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-right-arrow-withtail.svg)](https://unit42.paloaltonetworks.com/spring-ring-voice-phishing-campaigns/ "Spring Ring: An Inside Look at Voice Phishing Campaigns in Microsoft Teams") ![Pictorial representation of AI-enabled malware. A vibrant digital interface displaying various icons and graphs, resembling a futuristic network or data analysis dashboard. The scene is illuminated with glowing lights and patterns.](https://unit42.paloaltonetworks.com/wp-content/uploads/2026/08/AdobeStock_1270203474-2-1-786x368.png) [![category icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2024/06/icon-threat-research.svg)Threat Research](https://unit42.paloaltonetworks.com/category/threat-research/) August 25, 2026 [#### The State of AI-Enabled Malware August 2026: From Brand Abuse to Agentic Execution](https://unit42.paloaltonetworks.com/ai-enabled-malware-analysis/) * [Backdoor](https://unit42.paloaltonetworks.com/tag/backdoor/ "backdoor") * [Bitcoin](https://unit42.paloaltonetworks.com/tag/bitcoin/ "Bitcoin") * [DLL hijacking](https://unit42.paloaltonetworks.com/tag/dll-hijacking/ "DLL hijacking") [Read now ![Right arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-right-arrow-withtail.svg)](https://unit42.paloaltonetworks.com/ai-enabled-malware-analysis/ "The State of AI-Enabled Malware August 2026: From Brand Abuse to Agentic Execution") ![Pictorial representation of identity abuse through trusted communication channels. Close-up view of a digital screen displaying a glitched and pixelated image of a skull-like shape.](https://unit42.paloaltonetworks.com/wp-content/uploads/2026/08/02_Malware_Category_1920x900-2-786x368.jpg) [![category icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2024/06/icon-threat-research.svg)Threat Research](https://unit42.paloaltonetworks.com/category/threat-research/) August 20, 2026 [#### Identity Abuse Through Trusted Communication Channels](https://unit42.paloaltonetworks.com/communication-channel-identity-risks/) * [Authentication](https://unit42.paloaltonetworks.com/tag/authentication/ "authentication") * [Identity theft](https://unit42.paloaltonetworks.com/tag/identity-theft/ "identity theft") * [Malware](https://unit42.paloaltonetworks.com/tag/malware/ "malware") [Read now ![Right arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-right-arrow-withtail.svg)](https://unit42.paloaltonetworks.com/communication-channel-identity-risks/ "Identity Abuse Through Trusted Communication Channels") ![Pictorial representation of Kimwolf botnet malware family. Digital screen with a warning sign reading "Malware." The background features lines of computer code and graphics, creating a sense of cybersecurity threat.](https://unit42.paloaltonetworks.com/wp-content/uploads/2026/08/07_Malware_Category_1920x900-3-786x368.jpg) [![category icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2024/06/icon-threat-research.svg)Threat Research](https://unit42.paloaltonetworks.com/category/threat-research/) August 11, 2026 [#### Kimwolf v7: An Evolution of the Kimwolf Botnet](https://unit42.paloaltonetworks.com/kimwolf-v7-botnet-malware/) * [Android APK](https://unit42.paloaltonetworks.com/tag/android-apk/ "Android APK") * [Ethereum](https://unit42.paloaltonetworks.com/tag/ethereum/ "Ethereum") * [HTTP](https://unit42.paloaltonetworks.com/tag/http/ "HTTP") [Read now ![Right arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-right-arrow-withtail.svg)](https://unit42.paloaltonetworks.com/kimwolf-v7-botnet-malware/ "Kimwolf v7: An Evolution of the Kimwolf Botnet") ![Pictorial representatiom pf Aeternum's blockchain C2. A close-up of a computer circuit board with a central microchip is depicted. Red digital data streams in the form of glowing binary numbers and arrows appear to flow in and out of the chip. 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An artistic depiction of a digital workspace featuring an open laptop with a red virus on the screen.](https://unit42.paloaltonetworks.com/wp-content/uploads/2026/08/03_Malware_Category_1920x900-7-786x368.jpg) [![category icon](https://unit42.paloaltonetworks.com/wp-content/uploads/2024/07/top-threats.svg)High Profile Threats](https://unit42.paloaltonetworks.com/category/top-cyberthreats/) August 6, 2026 [#### ChainDrop: Inside a Self-Propagating npm Worm](https://unit42.paloaltonetworks.com/chaindrop-npm-worm-analysis/) * [Blockchain](https://unit42.paloaltonetworks.com/tag/blockchain/ "blockchain") * [ChainDrop](https://unit42.paloaltonetworks.com/tag/chaindrop/ "ChainDrop") * [Claude code](https://unit42.paloaltonetworks.com/tag/claude-code/ "Claude code") [Read now ![Right arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/icon-right-arrow-withtail.svg)](https://unit42.paloaltonetworks.com/chaindrop-npm-worm-analysis/ "ChainDrop: Inside a Self-Propagating npm Worm") * ![Slider arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/slider-arrow-left.svg) * ![Slider arrow](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/slider-arrow-left.svg) ![Close button](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/icons/close-modal.svg) ![Enlarged Image]() ![Newsletter](https://unit42.paloaltonetworks.com/wp-content/uploads/2026/03/unit42-footer-subscribe-desktop.png) ![UNIT 42 Small Logo](https://unit42.paloaltonetworks.com/wp-content/themes/unit42-v6/dist/images/palo-alto-logo-small.svg) Get updates from Unit 42 ## Peace of mind comes from staying ahead of threats. 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