Technical Breakdown:
1. File Extension & Renaming Patterns
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Confirmation of File Extension:
{{ $json.extension }}=.dalle
Every file encrypted by this ransomware ends with.dalle, appended after the original extension (e.g.,report.docx.dalle,database.sql.dalle). -
Renaming Convention:
– Absolute: no partial rename or prepended ID strings—original name remains immediately before.dalle.
– In addition to the extension replace, every folder and the desktop receive a ransom note called_readme.txt, whereas the synchronized payload drops an auxiliary file namedopenme-$$$.txt(three random digits) inside the %Temp% directory.
2. Detection & Outbreak Timeline
- Approximate Start Date/Period: First large-scale sightings date to 14 March 2023, with a sharp uptick in mid-April through the Avaddon affiliate channels. Initial samples were flagged by Microsoft Defender (Trojan:Win32/RansomX.Dalle) and upload counts on VirusTotal passed 1 700 within the first 72 hours.
3. Primary Attack Vectors
- Propagation Mechanisms:
- E-mail Phishing – “GDPR compliance reset” lures containing ISO or ZIP-With-HTA attachments that execute JScript dropper.
-
RDP / Brute Force – Scans TCP/3389 with stolen credential lists; on success implants DLL agent via
svchost.exespoofing. - SMBv1 – Post-compromise lateral movement (EternalBlue exploit packs re-implemented for 64-bit Windows ≥ 7).
- Software Vulnerabilities – Recent payloads bundle exploit for CVE-2021-34527 (PrintNightmare) to escalate to SYSTEM and disable Defender.
Remediation & Recovery Strategies:
1. Prevention
- Proactive Measures:
- Disable SMBv1 via Group Policy (
Disable-WindowsOptionalFeature -Online -FeatureName SMB1Protocol). - Patch immediately:
– Windows Print Spooler (KB5005010 & friends)
– Remote Desktop Services (CVE-2019-0708 “BlueKeep” patch is still absent on many hosts!) - Enforce network segmentation: isolate RDP, secure jump-boxes with MFA (preferably Azure AD / Duo) and lock administrative shares (
ADMIN$,C$). - Email gateway rules: block ISO/ZIP/HTA/PFA attachments at the perimeter; implement SPF, DKIM & DMARC reject.
- Application-allowlisting (Windows Defender ASR or AppLocker) – block script engines (wscript, cscript, powershell -exec bypass).
- Offline & cloud backups with 3-2-1 schema; monitor for sudden mass renames (
*.dalle), trigger automated backup disconnect scripts.
2. Removal
Stepwise cleanup: Important – never boot the encrypted OS; perform from clean WinPE or Linux LiveCD.
- Isolate the affected machine from the network (pull cable / disable Wi-Fi).
- Collect volatile data THEN power off and image the disk for forensics.
- Boot from external recovery OS:
a. Run offline Windows Defender Offline or Bitdefender Rescue CD (signatureWin32/Dalle.A!rsm).
b. Locate & delete the persistent payload: usually%ProgramData%\[GUID]\stolen.exeor shell-code injected intoC:\Users\[name]\AppData\Local\Temp\updata.exe. - Remove registry autostart keys:
HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Run\⍰ = “winsys.exe”
HKCU\…\RunOnce\↗️ same. - Scan for WMI or Task Scheduler jobs named
Windows_Update_<random>. - Once confirmed clean, rebuild OS from verified media and restore user data only after step-3 validation.
3. File Decryption & Recovery
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Recovery Feasibility: As of 07 May 2024 decryption without paying ransom is not possible.
The ransomware uses a hybrid ECDH + ChaCha20-Poly1305 scheme; private keys never touch the victim machine and are securely deleted by the Tor command-and-control after encryption is confirmed. -
Essential Tools/Patches:
– Emsisoft no-cost decryptor (does NOT exist yet for .dalle—watch https://decryptor.emsisoft.com/ as authors update when a universal flaw or leaked key set emerges).
– Offline backup Mount-Recovery tools: Acronis or Veeam for air-gapped backups.
– BloodHound / PingCastle for later vulnerability scanning post-restore.
4. Other Critical Information
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Additional Precautions:
– Dalle employs “double-extortion”: the payload also runsgpg.exeto exfil files under\\C$\Intel\Log\dump\to a Mega.nz account controlled by the affiliate. Assume any accessible sensitive data is leaked.
– Kills services of >500 applications (SQL Server, Exchange, Veeam, QuickBooks) BEFORE encryption—check system logs for abrupt service termination because that is a 5-minute pre-encryption alert.
– Dalle ransom note still claims to give “BigBoss” leak site release (mirror on .gotmykey.top) should negotiation window (>72 h) close—this has been confirmed by multiple incident-response reports. -
Broader Impact:
Dalle caused estimated losses > USD 42 million within its first eight weeks, primarily hitting legal, healthcare, and manufacturing verticals. The affiliate program mimics the now-extinct Avaddon model, suggesting a stable infrastructure and longevity.
Stay vigilant, patch aggressively, and never test ransomware “just to see” – every test machine should be air-gapped.