Iranian-Run Cloudzy: Unmasked Provider of Command-and-Control Services for Hacking Groups

In a groundbreaking investigation, the cybersecurity startup Halcyon has exposed the operations of an Iranian-run company named Cloudzy. This company has been providing command-and-control (C2) services to over 20 hacking groups, including ransomware operators, spyware vendors, and state-sponsored APT actors. Despite being registered in the United States, Halcyon’s researchers believe Cloudzy is operated out of Tehran, Iran, by an individual named Hassan Nozari, likely in violation of US sanctions.

Background on Cloudzy and its Operations

Cloudzy’s modus operandi is particularly alarming. The company only requires a working email address for registration, never verifies the identity of customers, and accepts anonymous payments in cryptocurrencies. Furthermore, during a 90-day analysis of Cloudzy’s services, Halcyon discovered that the cloud provider asks abusers to pay a nominal fee to continue operations, allowing them to evade detection and continue malicious activities.

Analysis of Cloudzy’s Services

The investigation carried out by Halcyon unveiled a far-reaching and diverse network of cyber threats. The Cloudzy infrastructure uncovered by the researchers was associated with hacking groups tied to various governments, including China, Iran, India, North Korea, Pakistan, Russia, and Vietnam. Additionally, the analysis revealed the involvement of Candiru, a sanctioned Israeli spyware vendor, as well as cybercrime rings and ransomware groups.

Of particular concern, the investigation identified two previously unreported ransomware groups: Ghost Clown and Space Kook, which rely on Cloudzy as a C2 provider. This discovery underscores the role Cloudzy plays in facilitating cybercriminal activities, including data breaches, extortion, and debilitating ransomware attacks.

Cloudzy’s Registration and Employees

Intriguingly, the researchers found that Cloudzy is formally registered as a company in the United States but lacks a physical office in the country. It became apparent that the company’s employees are primarily based in Iran, with Halcyon identifying eight individuals who appear to be employed by Cloudzy. Notably, there was a significant crossover between some of these individuals and employees of abrNOC, an Iranian hosting company suspected of involvement in cyber operations.

The Halcyon investigation highlighted a critical revelation

Cloudzy only exists on paper. The so-called employees of Cloudzy are, in fact, employees of abrNOC in Tehran. This discovery greatly implicates abrNOC as the actual hosting company behind Cloudzy. With high confidence, Halcyon assessed that Cloudzy is likely serving as a cutout for abrNOC, enabling the hosting company to operate discreetly.

The exposure of Cloudzy’s operations by Halcyon uncovers an extensive network of cyber threats, revealing the true depths of its involvement in supporting hacking groups globally. The potential violations of US sanctions raise concerns about the ability of rogue actors to circumvent international restrictions on cyber operations. The involvement of state-sponsored actors and sanctioned vendors emphasizes the significant international implications of this discovery.

This investigation reminds us of the crucial role cybersecurity research plays in unmasking and disrupting malicious activities. By shining a light on Cloudzy’s operations, Halcyon’s findings serve as a call to action for governments, cybersecurity organizations, and the global community to collaborate in countering such threats. Strengthened international cooperation and stringent regulatory measures are critical to mitigating these risks and protecting individuals, businesses, and nations from the pervasive threats posed by cybercriminal entities like Cloudzy.

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