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Chinese Actor Utilizes Vulnerability in VMware vCenter to Launch Babuk Ransomware Attack

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Cybersecurity researchers have attributed the exploitation of a newly patched security flaw in Broadcom VMware vCenter to a suspected China-nexus advanced persistent threat (APT).

The attacks involve the exploitation of CVE-2026-59310 (CVSS score: 9.8), a severe directory-traversal vulnerability in the VMware vCenter server that could be weaponized by a malicious actor to execute arbitrary code. A fix for the flaw was released by Broadcom on July 29, 2026.

German incident response company QUIRSO assessed with moderate confidence that the exploitation campaign aimed at CVE-2026-59310 is operated by a Chinese-speaking threat actor, likely working in the UTC+08:00 time zone, which is predominantly used in Chinese-speaking regions.

“This assessment is based on the convergence of Chinese-language artifacts in attacker-created scripts, apparent reuse of research from a Chinese security publication, repeated operational use of Chinese-language tools and management software, victimology excluding mainland China, and activity patterns compatible with UTC+08:00 working hours,” QUIRSO researchers Maike Orlikowski, Çağatay Yürekli, and Denis Szadkowski said.

The activity, which commenced five calendar days after public disclosure of the flaw, is estimated to have compromised 361 unique victim IP addresses across 47 countries, with most of the infections scattered across Germany (55), the U.S. (41), Turkey (38), Iran (26), and France (25).

Exploitation of CVE-2026-59309

One compromised vCenter Server Appliance analyzed by QUIRSO is said to have been targeted by both CVE-2026-59310 and CVE-2026-59309, an authentication bypass that has also witnessed active scanning efforts. Evidence shows malicious activity consistent with the exploitation of CVE-2026-59309 as early as August 1, 2026, followed by the creation of an administrative account on vCenter.

That said, no login events have been observed for the legitimate administrative account that was used to create this new account. The account creation originated from the IP address 146.59.252[.]178 and also involved vSphere discovery via the REST API on August 3 using User-Agent strings like “GoodMoodle-VCFleet/1.0,” in an attempt to masquerade it as VMware-related activity.

It’s worth noting that VCF Fleet is a centralized management capability introduced by Broadcom in VMware Cloud Foundation (VCF) version 9.0 to deploy, scale, patch, and operate multiple VCF instances. It encompasses multiple components, including VCF Operations, VCF Automation, vCenter, NSX Manager, vSphere Cluster, and workload domains.

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QUIRSO said there is no overlap between this activity and the chain of events involving the abuse of CVE-2026-59310 on the same system starting August 3, adding the newly created “vcenter_admin” administrator account was not used in subsequent phases of the attack.

Exploitation of CVE-2026-59310

As for the exploitation of CVE-2026-59310, the first activity involved the cron daemon (aka crond) logging a malformed cron file called “zz-poc59310-syslog.log.” In the next step, a curl command (or alternatively a wget command) is executed to retrieve a backdoor from “5.34.177[.]38:9861” and execute it, and then remove the log file.

The naming convention of the log file is significant as it is a direct reference to the CVE identifier and that it was a proof-of-concept (PoC) devised after details of the flaw became public knowledge.

“The ‘-syslog.log’ suffix also mirrors the vCSA remote syslog file naming convention, but the file appears under /etc/cron.d rather than the configured syslog output directory,” QUIRSO explained. “This suggests that the vCSA syslog server was abused to place files in a privileged execution location. While some files were malformed and not executed by cron, at least one file successfully executed and placed the ‘linuxFile’ backdoor on the system.”

The linuxFile implant is designed to provide remote command execution capabilities to the attacker. It establishes a connection to its controller over a WebSocket channel to receive instructions, executes them through /bin/sh, and transmits the results back to the attacker.

“The C2 [command-and-control] address is XOR-obfuscated and decoded at run-time, while communications are protected using the malware’s own application-layer cryptography despite using an unencrypted ws:// transport,” Szadkowski told The Hacker News via email. “It also automatically reconnects on failure and contains routines for establishing persistence through systemd and cron.”

The threat actor behind the operation also relied extensively on cron to execute malicious payloads, including to fetch and run a shell script (“esxi.sh”) from the IP address “185.144.28[.]120:3232.” The shell script then serves as a downloader and persistence installer for an architecture-specific reverse SSH (“reverse_ssh”) binary that’s retrieved from the same infrastructure.

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Other cron jobs related to creating staging directories, downloading executables, changing their permissions, and running them, while referencing servers at “192.255.141[.]13:8080” and “5.34.176[.]100:5244.” In what appears to be an operational security blunder, the latter has been found to expose the reverse SSH binaries toolset via an AList directory listing.

A brief description of some of the various actions carried out by the threat actor is as follows –

  • Deploying “linuxFile” (aka systemlog or linux_x86), which connects to “ws://intel.se9ly9upbhay.shop:8080/ws” and establishes persistence via a systemd service.
  • Setting three cronjobs impersonating legitimate VMware services: vmware-vpxd-stats-* (facilitates an SSH-based remote access channel by adding the attacker’s SSH public key to the authorized keys file), vmware-perf-collect-* (drops a JSP web shell named “vmware-perf-update.jsp”), and vmware-perf-sync-* (drops the same web shell and runs a Base64-encoded script that performs credential access and sets up a new account called “adminuser,” which is then added to the vSphere SSO Administrators group.
  • Creating two additional accounts: adding “vcadmin” to vSphere with a Base64-encoded Python script dropped on disk via bash commands run in a cronjob and creating a vSphere admin account via an external LDAP “Add” operation against vCenter’s VMware Directory Service (vmdir) from a remote client by using a pre-existing but compromised administrative account.
  • Creating a file named “/etc/sudoers.d/vmware-perf” with a configuration that grants the “perfcharts” service account unrestricted, non-interactive passwordless sudo access to root.
  • Running shell scripts like “/tmp/.vmware-perf-upd.sh” to obtain credentials for vmdir by querying the HKEY_THIS_MACHINEservicesvmdir registry location. If this method fails, it searches for VMware’s vmafd Python module and calls GetMachineName(), GetMachinePassword(), and GetDomainName() to get the distinguished name and password associated with the vCenter machine account.

The Threat of Ransomware on ESXi Hosts

Unauthorized access to sensitive credentials has been utilized to execute unauthorized modifications within privileged directories, which includes adding a specific “adminuser” identity to the Administrators group.

The utilization of the vSphere API for discovery operations and the deployment of the reverse_ssh client through “esxi.sh” are part of the tactics employed during the attack.

The creation of local accounts on ESXi hosts, such as “adminuser,” plays a crucial role in enabling ransomware encryption on the affected systems.

To avoid detection, minimize forensic visibility, and seamlessly blend into the VMware environment, the attackers have taken deliberate steps.

The ultimate objective of the attack is to introduce ransomware onto ESXi hosts, encrypting files with the distinct “.babyk” extension commonly associated with Babuk-derived ransomware. It remains uncertain whether this choice of ransomware was intentional to confuse attribution efforts.

Analysis conducted by QUIRSO has revealed that the primary goal of the campaign may not have been the deployment of the ransomware, but rather to distract defenders from the main intrusion. Encrypting ESXi log files further complicates the analysis by preventing access to critical telemetry data.

An exploitation of CVE-2026-59310 provided the threat actor with immediate root-level access on the vCenter Server appliance, enabling unrestricted control over the system without the need to compromise an unprivileged local account.

Continued Investigation

In a subsequent analysis, QUIRSO uncovered a GitHub repository (“pikpak0066/tmpclean”) associated with the same threat actor. The repository appears to contain a Go-based program designed to automatically remove old files from Linux temporary directories.

The threat actor utilized the repository to distribute reverse_ssh builds, which were used as part of the attacker’s infrastructure. The presence of a Linux systemd service within the repository suggests a systematic approach to wiping evidence of the intrusion from the “/tmp” directory.

A release version named “tmpclean v3.0.0” includes updated “reverse_ssh” binaries, indicating a potential effort to distribute additional payloads through the GitHub platform.

The reasons behind the establishment of the repository remain unclear, but it is possible that the threat actor is monitoring public disclosures to introduce new cleanup mechanisms and avoid detection.

(This article has been updated with additional insights from QUIRSO for clarification.)

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