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Konni hackers target blockchain engineers with AI-built malware

Recorded: Jan. 24, 2026, 7 p.m.

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Konni hackers target blockchain engineers with AI-built malware

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HomeNewsSecurityKonni hackers target blockchain engineers with AI-built malware

Konni hackers target blockchain engineers with AI-built malware

By Bill Toulas

January 24, 2026
10:23 AM
0

The North Korean hacker group Konni (Opal Sleet, TA406) is using AI-generated PowerShell malware to target developers and engineers in the blockchain sector.
Believed to be associated with APT37 and Kimsuky activity clusters, Konni has been active since at least 2014 and has been seen targeting organizations in South Korea, Russia, Ukraine, and various countries in Europe.
Based on samples analyzed by Check Point researchers, the threat actor's latest campaign focuses on targets in the Asia-Pacific region, as the malware was submitted from Japan, Australia, and India.

The attack begins with the victim receiving a Discord-hosted link that delivers a ZIP archive containing a PDF lure and a malicious LNK shortcut file.
The LNK runs an embedded PowerShell loader that extracts a DOCX document and a CAB archive containing a PowerShell backdoor, two batch files, and a UAC bypass executable.
Launching the shortcut file causes the DOCX to open and to execute one batch file included in the cabinet file.

The lure used in the phishing attackSource: Check Point
The lure DOCX document suggests that the hackers want to compromise development environments, which could provide them "access to sensitive assets, including infrastructure, API credentials, wallet access, and ultimately cryptocurrency holdings."
The first batch file creates a staging directory for the backdoor and the second batch file, and creates an hourly scheduled task masquerading as a OneDrive startup task.
This task reads an XOR-encrypted PowerShell script from disk and decrypts it for in-memory execution. Finally, it deletes itself to wipe the signs of infection.

Latest infection chainSource: Check Point
AI-generated backdoor
The PowerShell backdoor itself is heavily obfuscated using arithmetic-based string encoding, runtime string reconstruction, and execution of the final logic via ‘Invoke-Expression.’
The researchers say that the PowerShell malware "strongly indicates AI-assisted development rather than traditional operator-authored malware."
The evidence leading to this conclusion includes the clear, structured documentation at the top of the script, which is unusual for malware development; its modular, clean layout; and the presence of a “# <– your permanent project UUID” comment.

The exposing stringSource: Check Point
"This phrasing is highly characteristic of LLM-generated code, where the model explicitly instructs a human user on how to customize a placeholder value," explains Check Point.
"Such comments are commonly observed in AI-produced scripts and tutorials."
Before execution, the malware performs hardware, software, and user activity checks to ensure it is not running in analysis environments, and then generates a unique host ID.
Next, depending on what execution privileges it has on the compromised host, it follows a separate path of action as shown in the following diagram.

Privilege-based action diagramSource: Check Point
Once the backdoor is fully running on the infected device, it periodically contacts the command-and-control (C2) server to send basic host metadata and polls the server at randomized intervals.
If the C2 response contains PowerShell code, it turns it into a script block and executes it asynchronously via background jobs.
Check Point attributes these attacks to the Konni threat actor based on earlier launcher formats, lure filename and script name overlaps, and commonalities in the execution chain structure with earlier attacks.
The researchers have published indicators of compromise (IoCs) associated with this recent campaign to help defenders protect their assets.

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AI Malware
Backdoor
Konni
Malware
North Korea
Phishing

Bill Toulas
Bill Toulas is a tech writer and infosec news reporter with over a decade of experience working on various online publications, covering open-source, Linux, malware, data breach incidents, and hacks.

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Konni, a North Korean hacker group associated with APT37 and Kimsuky, is utilizing AI-generated PowerShell malware in a recent campaign targeting blockchain engineers. The operation, identified as TA406, has been active since 2014 and has previously targeted organizations in South Korea, Russia, Ukraine, and across Europe. This latest iteration, observed across Japan, Australia, and India, demonstrates a significant shift in development tactics, strongly suggesting AI assistance.

The attack begins with a phishing campaign delivering a ZIP archive containing a malicious LNK shortcut file. This lure, disguised as a PDF, prompts the victim to execute the shortcut, initiating the malware’s sequence. Upon execution, the LNK file triggers an embedded PowerShell loader that extracts a DOCX document and a CAB archive. The CAB contains a PowerShell backdoor, two batch files, and a UAC bypass executable, allowing the attackers to escalate privileges on compromised systems.

Crucially, the malware exhibits characteristics strongly indicative of AI-assisted development. Check Point researchers pinpointed this through several key markers. Firstly, the script’s clear, structured documentation, uncommon in traditional malware development, is a telling sign. Secondly, the script’s modular, clean layout reflects a deliberate design process often associated with AI-generated code. Finally, the presence of a comment – "# <– your permanent project UUID” – is a hallmark of AI-produced scripts and tutorials, where the model explicitly instructs the user to customize a placeholder.

Once launched, the PowerShell backdoor performs hardware, software, and user activity checks to avoid detection in analysis environments before establishing a unique host ID. The malware then dynamically adapts its execution path based on available privileges, communicating periodically with a command-and-control (C2) server. If the C2 responds with PowerShell code, the backdoor executes it asynchronously through background jobs, showcasing a sophisticated level of obfuscation and dynamic behavior.

The C2 server receives host metadata and polls the server at randomized intervals, adding another layer of complexity to evade detection. This dynamic communication strategy, combined with the AI-influenced design, suggests a concerted effort by Konni to maintain operational security and minimize the risk of attribution.

Check Point has published indicators of compromise (IoCs) associated with this campaign to assist defenders in mitigating the threat. The group's operational approach, leveraging AI-generated code, represents a concerning trend in cybercrime, potentially lowering the barrier to entry for sophisticated attacks and demanding a shift in defense strategies. The evolution of malware development, coupled with the attackers' resourcefulness, necessitates continuous monitoring, proactive threat hunting, and robust security controls for blockchain-related infrastructure.