Rise of the Docker Crypto Botnet: Malware Exploits Open APIs to Mine Dero

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Introduction

A dangerous new malware campaign is actively targeting misconfigured Docker API instances, hijacking them to build a massive cryptocurrency mining botnet. This threat specifically focuses on mining Dero, a privacy-oriented digital coin, by transforming unsecured Docker containers into mining slaves. Using stealthy techniques and worm-like propagation, the malware spreads rapidly across networks, exploiting container environments left vulnerable by poor security practices.

This article breaks down the attack, its propagation methods, technical details, and its implications. We’ll also explore what Undercode has to say about this incident, present a fact-checking summary, and offer a forecast of what could come next. Let’s dive into the full scope of this evolving cybersecurity threat.

🚨 the Malware Campaign Targeting Docker

Security researchers at Kaspersky have uncovered a novel malware campaign that abuses exposed Docker APIs to build a botnet dedicated to mining the Dero cryptocurrency. This campaign stands out due to its autonomous propagation mechanism and advanced container exploitation techniques.

The attackers begin by identifying Docker APIs that are publicly accessible and insecure. Upon gaining access, they deploy two primary components: a worm-like malware named “nginx” and a Dero miner called “cloud” — both written in Golang. The naming of “nginx” is intentionally misleading, aimed at mimicking the well-known web server to avoid detection.

The malware operates in a continuous loop, scanning for Docker instances with open TCP port 2375. Once a target is identified, it checks the Docker daemon’s responsiveness using commands like docker -H ps. If the instance is viable, it creates a malicious container with a randomly generated name. The malware then installs key packages like masscan and docker.io to scan and infect other networks — rapidly expanding its reach.

Persistence is ensured by embedding the malware in the .bash_aliases file, triggering execution upon shell login. The attack also targets Ubuntu-based Docker containers and reuses existing open-source mining tools like DeroHE CLI.

Notably, the operation lacks a centralized command-and-control (C2) server, making it harder to track or disrupt. Researchers have linked this campaign to earlier ones observed in 2023 and 2024 by CrowdStrike and Wiz, indicating continuous refinement by the threat actors.

Adding to the alarm, a separate campaign uncovered by AhnLab leverages a previously unknown backdoor using the PyBitmessage protocol. This malware variant processes instructions via PowerShell scripts and hides its communication in encrypted Bitmessage traffic — further underscoring the evolving sophistication of malware operations in containerized environments.

🔍 What Undercode Say:

The Undercode team views this campaign as a wake-up call for organizations relying on containerized infrastructure without proper security hygiene. Based on forensic analyses and attack simulations, here are key insights from our lab:

Root Cause: The core vulnerability lies in exposing Docker APIs (port 2375) to the internet without authentication or TLS encryption. This practice is alarmingly common in testing and development environments that get accidentally promoted to production.

Tactics & Techniques: The malware’s use of the name “nginx” is deceptive social engineering — designed to evade casual inspection and blend in with legitimate traffic. Its infinite scanning loop ensures continual botnet growth, with no reliance on centralized instructions.

Spread Mechanism: The use of masscan and direct Docker commands reflects deep familiarity with DevOps tooling. By embedding these into newly spawned containers, attackers ensure persistent propagation across any misconfigured cloud or on-premises environment.

Impact Scope: Cryptomining malware strains like this not only consume compute resources, but also degrade system performance, increase energy bills, and may even expose victim environments to more dangerous payloads like ransomware.

Relation to Previous Campaigns: The overlap with campaigns from 2023 and 2024 shows a pattern of persistent threat actors refining their tactics. Each iteration becomes more modular, stealthy, and scalable.

No C2 Infrastructure: Operating without a C2 server eliminates a traditional detection vector. The malware is self-replicating and autonomous, making it harder for defenders to identify command sources.

Enterprise Readiness: Most organizations are still catching up with container security best practices. From secrets management to access control, security isn’t always top-of-mind for DevOps teams — a critical blind spot.

Behavioral Red Flags:

Mitigation: Immediate action should be taken to audit exposed Docker instances. Use firewalls, implement access controls, restrict API access, and monitor container logs for anomalous behavior.

Community Collaboration: Platforms like GitHub must implement better controls to monitor for mining tool misuse. Open-source projects are being weaponized too easily.

✅ Fact Checker Results ✨

✔️ The malware components “nginx” and “cloud” do exist and are written in Golang.
✔️ Port 2375 remains a known Docker API vulnerability point.
✔️ There is historical precedent connecting this campaign with prior attacks in 2023 and 2024.

🔮 Prediction 🧠

Given the campaign’s scalability and self-replication strategy, the threat of Docker-based botnets will likely increase throughout 2025. We predict:

A rise in hybrid botnets leveraging both Kubernetes and Docker misconfigurations.
Security vendors will push for auto-hardening features in container platforms.
Cryptocurrency mining will remain a lucrative and low-risk objective for attackers — with Dero and Monero staying top targets due to their anonymity features.

Organizations must prioritize container security or risk becoming unwitting miners in a cybercriminal empire.

References:

Reported By: thehackernews.com
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