The MuddyWater Iranian hackers disguised their operations as a Chaos ransomware attack, relying on Microsoft Teams social engineering to gain access and establish persistence. Although the attack involved credential theft, persistence, remote access, data exfiltration, extortion emails, and an entry on the Chaos leak portal, the attackers used infrastructure and techniques associated with the MuddyWater attacks. Rapid7 researchers believe that the ransomware component was likely used to conceal the actual cyber-espionage operation and to complicate attribution. “The strategy highlights the convergence between state-sponsored intrusion activity and criminal tradecraft, where a big “tell” lies in the techniques that were deployed - and those that weren’t. This strategy suggests the primary goal was not financial gain,” explains Rapid7. Despite the facade, Rapid7 has moderate confidence in attributing the incident to MuddyWater, a threat group also known as Static Kitten, Mango Sandstorm, and Seedworm. The conclusion is based on infrastructure overlap, a specific code-signing certificate that the state-sponsored group used to sign Stagecomp and Darkcomp malware attributed to the threat actor, and various operational tradecraft. MuddyWater is an Iranian state-sponsored cyber-espionage group, notorious for long-term network intrusion campaigns that align with the country's Ministry of Intelligence and Security (MOIS). The Chaos is a ransomware-as-a-service (RaaS) operation that emerged in 2025 and is known for big-game hunting attacks, double-extortion tactics, and social engineering campaigns mostly targeting organizations in the United States.