Cyber Incident Victim: Synology
Date:
Feb 2014
Location:
Taiwan
Summary
A hacker exploited vulnerabilities in Synology NAS devices to install malware for unauthorized Dogecoin mining, causing significant performance degradation due to high CPU usage. The attacker leveraged known security flaws in the Linux-based operating system to gain administrative access and deploy CPUMiner malware, directing compromised systems to a private mining pool. This operation generated over 500 million Dogecoins, equivalent to approximately $620,000, with the bulk mined during a two-month period. Analysis traced the activity to a wallet address and configuration files containing the username "foilo.root3," with code artifacts suggesting the threat actor's German origin. The incident represents one of the most profitable illicit cryptocurrency mining campaigns documented.
| CIA Posture | Motives | Tactics, Techniques & Procedures |
|---|---|---|
| Available to members | 1 motive | 1 technique |
| Threat Actor | Type | Location |
|---|---|---|
| 1 actor | Available to members | Available to members |
Description
In early February 2014, Synology Network Attached Storage (NAS) users reported performance degradation and abnormally high CPU usage on their devices. Investigations revealed malware stored in a folder labeled "PWNED" as the cause. The infection exploited four vulnerabilities in Synology's DiskStation Manager (DSM), a Linux-based operating system for NAS devices, which security researcher Andrea Fabrizi had disclosed in September 2013. These flaws allowed attackers to gain administrative control over unpatched systems. Synology released initial patches following Fabrizi's disclosure and issued additional remediation updates in February 2014. Internet Storm Center data showed significant scanning activity targeting port 5000 – Synology's default management interface port – beginning after the vulnerability disclosure. Analysis confirmed the malware was a modified version of CPUMiner compiled specifically for Synology hardware, configured to connect to a private mining pool at IP address 178.254.21.142:8332.
The mining operation generated over 500 million Dogecoins (approximately $620,496 USD) between January and February 2014, primarily deposited into wallet address D9cDqmVjYXdeDjMtXSV7Z3LgiHvRZ12bPX. Blockchain analysis revealed the bulk of deposits occurred during this two-month period, marking one of the most financially successful illicit cryptocurrency mining campaigns documented at the time. Configuration files contained the username "foilo.root3," with online traces linking this alias to German-language coding repositories and exploit development activity. Synology provided malware removal instructions through customer support forums while continuing to patch affected DSM versions. The incident demonstrated how threat actors rapidly weaponized known vulnerabilities in internet-connected storage devices, leveraging their computational resources for cryptocurrency generation at scale.