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Introduction: A Rising Threat With Geopolitical Roots
In the ever-evolving landscape of cyberwarfare, the fusion of profit-driven crime and ideological warfare is taking a more pronounced form. At the center of this shift is Pay2Key.I2P, a ransomware-as-a-service (RaaS) group linked to Iranian cyber interests. As U.S. and Israeli institutions grapple with persistent cyber threats, Pay2Key.I2P is not just another criminal groupâit represents a hybrid model of state-aligned cybercrime with geopolitical motivations. The group is rapidly escalating its operations, using advanced tactics, financial incentives, and strategic partnerships to wage digital war.
the Original Report
The Iranian-linked ransomware group Pay2Key.I2P is intensifying cyberattacks against U.S. and Israeli targets. This group evolved from the original Pay2Key and is believed to be associated with the Iran-aligned APT group Fox Kitten. Now functioning as a RaaS (Ransomware-as-a-Service) operation, Pay2Key.I2P was launched in February 2025 and has expanded quickly due to heavy promotion on darknet forums and platforms like X (formerly Twitter).
In just four months, the group has executed over 51 successful ransomware operations, amassing more than \$4 million in ransoms. Some affiliates reportedly earned over \$100,000 individually. A new Linux-compatible version of their ransomware introduced in June 2025 has broadened the group’s target base, intensifying concerns of a large-scale cyberwarfare campaign.
According to Morphisecâs recent report, Pay2Key.I2P has integrated techniques and malware elements from other well-known threats such as Mimic ransomware and ELENOR-Corp. Their malware is distributed through a sophisticated multi-format loader using PowerShell and CMD scripting, enabling advanced evasion tactics. Tools like Themida, XOR-encryption, and sandbox evasion mechanisms further highlight their technical proficiency.
Affiliates are now offered an 80% cut of the ransom, a noticeable increase aimed at attracting more actors aligned with Iranian interests. Analysts point to strong ideological motivation backing the groupâs operations, which is evident in both their choice of targets and their continued development of new ransomware variants.
In early July, a joint advisory from the FBI, NSA, CISA, and DC3 warned U.S. entities about heightened risks from Iranian-backed cyber actors. While there has been no large-scale coordinated attack yet, smaller incidentsâsuch as website defacements, leaks, and minor DDoS attacksâhave surged. The advisory urged critical infrastructure operators to secure systems, apply patches, and implement phishing-resistant multi-factor authentication.
What Undercode Say:
Pay2Key.I2Pâs rise is not just about ransomwareâitâs a reflection of how cybercrime is evolving in the shadow of global politics. Their model is aggressive, decentralized, and scalable, combining the profit motive of cybercriminals with the geopolitical objectives of a state.
Offering affiliates up to 80% of ransoms is not just a recruiting tacticâitâs a way to build a decentralized cyber army. This RaaS model removes the need for centralized control while still targeting ideologically aligned enemies. It’s an approach reminiscent of hybrid warfare seen in other theaters, blending non-state and state-sponsored efforts.
Their use of advanced techniquesâdual-language scripts, XOR encryption, anti-sandbox methods, and the Themida packerâdemonstrates a clear investment in long-term, persistent threats rather than smash-and-grab tactics. The Linux version rollout in June 2025 signals a strategic shift: the group is now going after critical infrastructure, IoT systems, and server environments traditionally underprotected.
While the U.S. and Israeli cybersecurity communities are responding swiftly, the cyber battleground is asymmetric. Pay2Key.I2P and groups like it donât need to bring down entire networks; sowing fear, leaking sensitive data, or halting industrial operations for a few hours can have massive psychological and economic ripple effects.
The advisory from U.S. agencies shows awareness but also hints at a gap: no confirmed coordinated campaign has been identified yet. That doesnât mean one isnât coming. Instead, it may mean these actors are testing the waters, refining tools, and preparing for something larger.
For defenders, the takeaway is clear: ransomware
đ Fact Checker Results:
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Pay2Key.I2P is linked to Iran-affiliated APT group Fox Kitten, per Morphisec and OSINT reports.
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The group has processed over \$4 million in ransoms since February 2025, with 51 confirmed incidents.
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U.S. government agencies issued official warnings in July 2025 about escalating Iranian cyber threats.
đ Prediction:
As geopolitical tensions persist and Iran’s cyber strategies evolve, Pay2Key.I2P is likely to broaden its affiliate base beyond state sympathizers. Expect future campaigns targeting cloud infrastructure, supply chains, and healthcare systems. Ransomware variants may increasingly incorporate AI-assisted evasion techniques and social engineering payloads. The groupâs expansion suggests a possible merger with or absorption of other ideological hacktivist cells, forming a more unified cyber-offensive wing under Tehran’s influence.
References:
Reported By: securityaffairs.com
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