Group-IB printed its report on Jan. 15 and stated the strategy might make disruption more durable for defenders.
The malware reads on-chain information, so victims don’t pay gasoline charges.
Researchers stated Polygon isn’t weak, however the tactic might unfold.
Ransomware teams often depend on command-and-control servers to handle communications after breaking right into a system.
However safety researchers now say a low-profile pressure is utilizing blockchain infrastructure in a means that could possibly be more durable to dam.
In a report printed on Jan. 15, cybersecurity agency Group-IB stated a ransomware operation often called DeadLock is abusing Polygon (POL) good contracts to retailer and rotate proxy server addresses.
These proxy servers are used to relay communication between attackers and victims after techniques are contaminated.
As a result of the data sits on-chain and might be up to date anytime, researchers warned that this method might make the group’s backend extra resilient and more durable to disrupt.
Sensible contracts used to retailer proxy info
Group-IB stated DeadLock doesn’t depend upon the same old setup of mounted command-and-control servers.
As an alternative, as soon as a machine is compromised and encrypted, the ransomware queries a particular good contract deployed on the Polygon community.
That contract shops the most recent proxy tackle that DeadLock makes use of to speak. The proxy acts as a center layer, serving to attackers keep contact with out exposing their fundamental infrastructure instantly.
For the reason that good contract information is publicly readable, the malware can retrieve the main points with out sending any blockchain transactions.
This additionally means victims don’t have to pay gasoline charges or work together with wallets.
DeadLock solely reads the data, treating the blockchain as a persistent supply of configuration information.
Rotating infrastructure with out malware updates
One cause this technique stands out is how rapidly attackers can change their communication routes.
Group-IB stated the actors behind DeadLock can replace the proxy tackle saved contained in the contract every time vital.
That offers them the flexibility to rotate infrastructure with out modifying the ransomware itself or pushing new variations into the wild.
In conventional ransomware instances, defenders can typically block visitors by figuring out recognized command-and-control servers.
However with an on-chain proxy checklist, any proxy that will get flagged might be changed just by updating the contract’s saved worth.
As soon as contact is established by the up to date proxy, victims obtain ransom calls for together with threats that stolen info can be bought if cost isn’t made.
Why takedowns turn into harder
Group-IB warned that utilizing blockchain information this fashion makes disruption considerably more durable.
There isn’t any single central server that may be seized, eliminated, or shut down.
Even when a particular proxy tackle is blocked, the attackers can change to a different one with out having to redeploy the malware.
For the reason that good contract stays accessible by Polygon’s distributed nodes worldwide, the configuration information can live on even when the infrastructure on the attackers’ facet adjustments.
Researchers stated this offers ransomware operators a extra resilient command-and-control mechanism in contrast with typical internet hosting setups.
A small marketing campaign with an creative technique
DeadLock was first noticed in July 2025 and has stayed comparatively low profile to date.
Group-IB stated the operation has solely a restricted variety of confirmed victims.
The report additionally famous that DeadLock isn’t linked to recognized ransomware affiliate programmes and doesn’t seem to function a public information leak web site.
Whereas which will clarify why the group has obtained much less consideration than main ransomware manufacturers, researchers stated its technical method deserves shut monitoring.
Group-IB warned that even when DeadLock stays small, its approach could possibly be copied by extra established cybercriminal teams.
No Polygon vulnerability concerned
The researchers careworn that DeadLock isn’t exploiting any vulnerability in Polygon itself.
Additionally it is not attacking third-party good contracts corresponding to decentralised finance protocols, wallets, or bridges.
As an alternative, the attackers are abusing the general public and immutable nature of blockchain information to cover configuration info.
Group-IB in contrast the approach to earlier “EtherHiding” approaches, the place criminals used blockchain networks to distribute malicious configuration information.
A number of good contracts linked to the marketing campaign had been deployed or up to date between August and Nov. 2025, in response to the agency’s evaluation.
Researchers stated the exercise stays restricted for now, however the idea could possibly be reused in many alternative types by different risk actors.
Whereas Polygon customers and builders will not be going through direct danger from this particular marketing campaign, Group-IB stated the case is one other reminder that public blockchains might be misused to assist off-chain prison exercise in methods which are tough to detect and dismantle.
