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Hit by ransomware? Isolate affected systems now. Do not reboot or reformat.

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Scenario solution

ESXi / Hyper-V Virtualization Encrypted by Ransomware

  • VMware ESXi
  • vCenter Server
  • Microsoft Hyper-V
  • Proxmox VE
  • 华为 FusionCompute
  • SAN / iSCSI 存储
  • Veeam Backup & Replication

Hypervisor-level encryption causes the widest blast radius of any ransomware event: dozens of production VMs go dark within an hour or two. This page covers what Linux ESXi encryptors actually do — shut down guests, encrypt vmdk, delete snapshots — the recovery value of flat disk files, and how Hyper-V and Proxmox cases differ.

Typical symptoms

  • The ESXi DCUI or Host Client login page has been replaced with a ransom message, or a ransom note file sits in /tmp when you connect over SSH
  • Every virtual machine was powered off within the same window, or now shows as Invalid and will not start
  • In the datastore browser, .vmdk, -flat.vmdk, .vmx, .vmsd and .nvram files carry appended extensions, alongside companion files such as .args
  • vCenter will not accept logins or vpxd is failing, and the vCSA appliance's own VM is encrypted too
  • VM snapshots and backup files from Veeam or a backup agent (vbk, vib) have been deleted or encrypted
  • Unknown SSH authorized keys, unexpected ESXi shell logon records and modified startup scripts are present on the host

Business risk & common mistakes

The hypervisor is the highest-value target in a ransomware operation: a single ESXi host often runs the domain controller, ERP application servers, databases, file servers and the backup proxy, so compromising one management plane is equivalent to taking the whole data centre. That is why most major RaaS operations now ship Linux/ESXi encryptors. Public reporting notes that Akira's Linux encryptor carries the project name Esxi_Build_Esxi6, with later builds using esxcli and vim-cmd to gracefully shut down guests before encrypting their disks; Qilin's Linux build explicitly targets ESXi and FreeBSD, focuses on encrypting virtual machines and deleting their snapshots, and even exposes command-line switches such as --no-snap-rm and --no-vm-kill to control that behaviour.

Why shut the guests down first? A running VM locks its vmdk, so powering off unlocks the file for complete encryption. That behaviour tells us two things: the shutdown timestamps usually pin the attack window precisely, and a force-stopped VM may hold unflushed database transactions, so consistency checks are required after recovery.

Risks and mistakes:

  • Total business outage with backups failing simultaneously. The backup server is frequently a VM itself, or the backup repository is mounted over NFS / iSCSI from the very datastore that was encrypted.
  • Reinstalling ESXi or reinitialising the datastore. The single most fatal error in this scenario — a voluntary format. Even where the interface shows the datastore as unavailable, the underlying data may be intact.
  • Creating new VMs or new datastores on the original storage, or attempting VMFS resignature. Risks overwriting metadata.
  • Repeatedly rebooting the ESXi host, which can trigger automatic repair and writes and discards in-memory artefacts.
  • Restoring from encrypted backups over the original volumes.
  • Running the attacker's ESXi decryption script — an unknown script executed with root privileges on the hypervisor.

We do not recommend paying, and we do not negotiate on your behalf.

Our response plan

  1. Freeze the scene: no reinstall, no reinitialisation

    The first priority is to stop anything from writing to the datastore. Disconnect external access to the management and storage networks, halt backup jobs and automation scripts, and do not power on VMs, create VMs, reinstall ESXi or resignature VMFS. Then take LUN-level block images or array snapshots at the storage layer — the single most important step here. In parallel, preserve the ESXi logs under /var/log, including hostd.log and vmkernel.log, shell and SSH logon records, authorized_keys, and the vCenter event log.

  2. Identify encryptor behaviour and coverage

    Establish the family and encryptor build, focusing on three questions: which file types were encrypted (only .vmdk descriptors and configuration files, or the -flat.vmdk payload data as well), whether intermittent encryption was used, and whether snapshots and backup files were deleted. Run segmented entropy scans across each VM's flat disks and grade recoverability per guest. ESXi encryptors frequently encrypt only a fraction of each file for speed — repeatedly observed in publicly documented large-scale ESXi campaigns — and that is the most important recovery lead in this scenario.

  3. Assess recoverability and set recovery priority

    Assess four paths: backup and replica restore (whether Veeam backups, off-host copies or replicated volumes survived), flat-disk reconstruction (where configuration files were encrypted but the -flat.vmdk payload is largely intact, descriptors and the vmx can be rebuilt and the disk mounted), storage or array snapshot rollback, and in-guest data extraction (attaching readable vmdks to a recovery host and pulling database files and business data directly). At the same time, agree a recovery order with the customer: domain controllers and authentication, core databases, ERP/OA applications, file services, then test and archive VMs.

  4. Recover in an isolated environment and verify consistency

    Work on the images from a separate recovery host or cluster, and attach recovered VMs to an isolated network segment rather than putting them straight back onto production. Because the guests were force-stopped, consistency checks are mandatory once they boot: databases need page and transaction consistency verification, file servers need a filesystem check, and domain controllers need their AD database validated. Only after each VM is confirmed clean — no web shells, no persistence, no attacker accounts — and patched, do they return to production in priority order.

  5. Harden the management plane and rebuild backup architecture

    Never expose ESXi or vCenter management interfaces to the internet; put them on a dedicated management VLAN. Stop leaving SSH and the ESXi Shell enabled, turn on lockdown mode, disable unnecessary services (including the SLP service exploited in past campaigns), and move to a supported, fully patched version. Give vCenter and ESXi independent credentials that are not shared with the Windows domain. The backup architecture must change too: the repository cannot sit on the same storage it protects. Enable immutable backups and retain at least one offline copy. Deliver an incident report, recovery inventory and remediation plan.

Recovery paths

There is a counter-intuitive but crucial fact here: "all VMs unavailable" in the interface does not mean all data was destroyed. A virtual machine consists of small configuration files (.vmx, .vmsd, .nvram) and large disk payload files (-flat.vmdk or deltas). The former are tiny and easily encrypted in full; the latter run to tens or hundreds of gigabytes, and encryptors often cover only a fraction of them for speed.

Path 1: backups, replicas and storage replication. The first choice. Verify item by item whether the backup chain is intact, whether the repository was encrypted too, and whether off-site copies and replicated volumes survived. One caution: the backup server itself is a priority target, and public reporting documents ransomware operations exploiting credential-disclosure flaws in Veeam Backup & Replication (such as CVE-2023-27532) to extract backup infrastructure credentials and move laterally. Never assume the backups are fine.

Path 2: rebuilding VMs from flat disks. Applies where configuration files were encrypted but the -flat.vmdk payload is largely intact. The method reconstructs the vmdk descriptor and vmx configuration from disk size and geometry, then mounts the disk to read its filesystem. In the publicly documented large-scale ESXi campaigns, CISA released a recovery script whose whole principle was rebuilding VM metadata from virtual disks the malware had not encrypted — independent confirmation that this path works.

Path 3: storage- and array-layer snapshots. Encryptors operate at the ESXi filesystem level and generally cannot delete snapshots or replicas on the storage array. Inventory SAN snapshots, replication targets and built-in hyperconverged snapshots.

Path 4: in-guest data extraction. Where booting a whole VM is difficult, attach readable disks to a recovery host and pull database files, file-server data and configuration directly, then rebuild the service on a new VM. This is often faster than getting the original guest to start.

Path 5: public decryptors, depending on the family, matched precisely by version and validated on a copy.

Stated plainly: where the encryptor covered the flat disks completely, snapshots were deleted, and the backup repository sat on the same storage and was encrypted with it, very little room remains. We avoid "100%" and "guaranteed recovery"; the assessment grades recoverability VM by VM. No ransom payment, no negotiation.

Common ransomware families

Hardening recommendations

  • Fully isolate management planes from the internet. Never port-forward ESXi, vCenter, Hyper-V management or iDRAC / iLO interfaces; place them on a dedicated management VLAN reachable only from a jump host.
  • Stay on supported versions and patch promptly. Large-scale ESXi ransomware campaigns have exploited long-unpatched service vulnerabilities on old builds, notably OpenSLP-related flaws. Disable services you do not need, such as SLP and CIM.
  • Enable lockdown mode and keep SSH and the ESXi Shell off by default, enabling them temporarily with auditing when required, and periodically review authorized_keys and local accounts.
  • Decouple hypervisor accounts from the Windows domain. vCenter must not share administrator credentials with the production domain; virtualization administrators should use separate strong passwords and MFA, so a compromised domain controller does not hand over the hypervisor.
  • The backup repository must not share the fate of the data it protects. Keep the backup server outside the protected domain and storage, enable immutable backups or object lock, retain an offline copy, and separate the backup network from production.
  • Protect the backup software itself. Keep platforms such as Veeam patched and restrict access to their management ports; public reporting documents credential-disclosure flaws being used by ransomware operators for lateral movement.
  • Snapshots are not backups, but have them anyway. Array-level snapshots and replication live outside the hypervisor and are hard for an attacker working from ESXi to delete — an effective second line.
  • Monitor hypervisor-layer behaviour. Alert on mass VM shutdowns, unusual esxcli invocations, bulk snapshot deletion and ESXi shell logons. These precede encryption and often leave a ten-minute window to intervene.

Emergency response

Data already encrypted? Stop and let an engineer look first

We do not pay ransoms and we do not negotiate with attackers. Engineers run a free assessment first, then propose a recovery plan and a firm quote.

Related questions

Related industries

FAQ

Frequently asked questions

  • None of the VMs on our ESXi host will start — is all the data gone?

    Not necessarily. A VM consists of very small configuration files and very large disk payload files, and to finish before detection encryptors often touch only the configuration files and a fraction of each disk. An "invalid" VM in the interface usually means the configuration file was destroyed, not that the disk data is gone. In the publicly documented large-scale ESXi campaigns, the official recovery approach was precisely to rebuild VM metadata from virtual disks the malware had not encrypted. So the first step is not reinstalling — it is freezing the scene, imaging at the storage layer, and grading flat-disk encryption coverage VM by VM.

  • All our snapshots were deleted — is there any other rollback point?

    Several directions are worth checking. Array-side snapshots and replicas: the encryptor runs on top of ESXi and usually has no storage array credentials, so SAN snapshots, replication targets and built-in hyperconverged snapshots may be intact. Off-host and off-site backups: backup copies, tape, offline media. Remnants of deleted snapshots: deletion only releases metadata references, so delta files may still be recoverable while VMFS has not been heavily overwritten. Standbys and other cluster members: physical database standbys and cross-site cluster nodes often survive on a different segment. Inventorying all of these is a standard part of assessment.

  • How did the attackers get ESXi access?

    Four paths are common. First, unpatched hypervisor service vulnerabilities — there have been large-scale campaigns against old ESXi service flaws. Second, a management interface exposed to the internet or reachable directly from the office network. Third, credential reuse: vCenter sharing administrator accounts with the Windows domain, so a compromised domain controller takes the hypervisor with it. Fourth, lateral movement from backup infrastructure, where public reporting documents ransomware operators exploiting credential-disclosure flaws in backup software to obtain privileged credentials. Our forensics phase draws a specific conclusion from hostd, vmkernel and vCenter event logs plus network records.

  • Do Hyper-V and Proxmox behave the same way?

    The principle is the same; the details are not. Hyper-V runs on Windows Server with guests stored as .vhdx / .avhdx files, so it is more often encrypted incidentally by a Windows encryptor — and when the host is domain-joined, a compromised domain controller takes the whole cluster with it. Recovery must also check the integrity of checkpoint chains (avhdx differencing disks). Proxmox is Linux and KVM based, with disks held as qcow2 files or as LVM / Ceph block devices; in the block-device case file-level techniques do not apply and handling resembles a storage-layer incident. What all three share: the management plane must be isolated, accounts must be decoupled from the domain, and backups must live outside the platform.

  • Can recovered VMs go straight back onto the production network?

    No. The guests were force-stopped by the attacker, and their disks may still carry web shells, backdoor services, scheduled tasks and attacker-created accounts; putting them straight online restores the entry point too. The correct approach is to bring recovered VMs up on an isolated segment first, hunt for persistence, verify integrity, patch, reset local and domain credentials, and run database and filesystem consistency checks — then return them to production in priority batches. Confirm the entry point is closed as well; re-encryption on the day of recovery is far from rare.

  • Can we power on just one VM to see what happens?

    Strongly advised against. Powering on writes to the datastore — swap files, logs, snapshot metadata — potentially overwriting regions needed for reconstruction, and if the encryptor left components or scheduled tasks behind, booting can trigger a second encryption pass. Failed power-on attempts also leave new metadata changes on VMFS that complicate later recovery. The right way to "try" is on the image: attach the copy in a recovery environment and verify disk readability and filesystem state read-only.

Updated