Cybersecurity experts have identified a new Android malware named RatHat, believed to be operated by Chinese threat actors. RatHat is distributed primarily through smishing and malvertising campaigns, leading users to deceptive download portals. It employs an automated multi-stage infection process and exploits Accessibility features along with a local ADB self-pairing mechanism to escape the Android application sandbox. The malware uses various anti-analysis techniques, including container tampering, manifest bombs, DEX bytecode poisoning, and dual string-encryption. RatHat's architecture consists of a malicious Android application, a Go agent, and an FRP reverse-proxy client, which together enable it to gain critical system permissions and perform various malicious activities such as credential capturing, screen recording, and SMS interception. Even if uninstalled, the malware retains shell access to the device, allowing attackers to reinstall it. RatHat can serialize the device's Accessibility tree to XML and communicate with a Generative AI assistant for tasks like screen coordinate determination and text extraction. The Go Agent, masquerading as a native library, exploits shell access to execute commands and establish a persistent connection to a command-and-control server via the FRP client. The C2 server can issue extensive commands to collect sensitive information, including SMS messages, credentials, files, and keystrokes, and RatHat also features a hardware-level keylogger.