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/DISPATCH · 2026-08-14

DeadLock Ransomware Stores C2 in Polygon Smart Contracts; 80+ Orgs Hit

Microsoft: DeadLock ransomware, active since July 2025, stores C2 proxy URLs in Polygon smart contracts and rotates infrastructure. HTML ransom pages plus Session evade classic LE takedowns. 80+ victims on leak sites as of July 2026—IT, mining, transport, manufacturing, hospitality, consumer goods.

On 10 August 2026, Microsoft Threat Intelligence published a deep-dive on DeadLock ransomware architecture. Group active since July 2025. By July 2026 the leak site listed 80+ victims across Europe, Asia, the Americas, and Africa—IT, mining, transport, manufacturing, hospitality, consumer goods.

Defining trait: Polygon smart contracts store C2 proxy URLs and leak-blog content. Session plus Wasabi-compatible storage form a takedown-resistant comms stack. Classic domain/IP blocks fail at high rate.

Incident Overview

DeadLock is written in Rust. Dual extortion. Per-file encryption with Curve25519 and XChaCha20. HTML ransom page embeds E2E chat, a paginated leak blog, and a file browser—no traditional backend.

Pre-encrypt: deletes volume shadow copies, wipes event logs, kills security/backup/virtualization/cloud-sync processes. AnyDesk for remote control.

Ransom in Bitcoin or Monero. Offers decryptor, stolen-data deletion, initial-access disclosure, and hardening advice.

Technical Details

Polygon Smart Contracts as Config Store

HTML recovery page talks to two Polygon contracts via eth_call (no wallet):

Page round-robins 6 public Polygon RPC endpoints for the proxy URL. One dead endpoint does not break comms. Attacker rotates the proxy URL by updating the contract—no re-drop of victim-side pages. Domain/IP block chains are bypassed.

Session Network and Wasabi Storage

Chat rides Session (onion routing + Swarm). HTML page talks to the victim browser via the proxy. Victim identity is derived deterministically from entered credentials—no registration. Lost credentials = lost identity. Stolen files distributed via Wasabi-compatible decentralized storage; access still gated by the smart contracts.

Encryption Behavior

Encryptor self-throttles: RAM cap 29%, CPU cap 70%, directory threads = 2× CPU cores. Host stays “usable” during encryption; lowers operator detection. Per-file keys. Large files chunked for speed. Appends .dlock, swaps file icons, drops ransom note + HTML page, replaces desktop wallpaper.

Impact

Decentralized stack creates three problems for defenders and LE:

Remediation

Immediate Actions

Threat-Hunting IoCs

Sources