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CoolClient is a sophisticated backdoor family linked to the HoneyMyte APT group, actively used in cyber-espionage campaigns targeting organizations in Asia and Russia since its initial disclosure in 2022. It has capabilities such as keylogging, clipboard theft, credential harvesting, and system reconnaissance. Investigations in 2023 revealed enhancements, including clipboard theft and HTTP traffic interception. By late 2025 and into 2026, a variant was noted that could deploy a signed kernel-mode driver as a Windows service, improving its stealth and operational capabilities. In a recent campaign targeting Myanmar, the HoneyMyte group used PlugX to deploy CoolClient components. They configured Microsoft Defender to exclude a fake Windows Defender installation directory and a renamed executable, defender.exe, to avoid detection. Persistence was achieved through a scheduled task that executed defender.exe with SYSTEM privileges at startup, which sideloaded the malicious libngs.dll to initiate the CoolClient execution chain. The latest CoolClient variant has a multi-stage execution chain, including: - defender.exe / Sang.exe: Exploited legitimate application for DLL sideloading. - libsrapc.dll: Benign dependency for the Sangfor application. - libngs.dll: First-stage loader that decrypts and loads the next stage. - loadcert.ini: Second-stage DLL implementing core functionalities. - cert.ini: Final-stage implant for command and control communication. - time.ini: Configuration file for CoolClient. The execution begins with the legitimate Sangfor application loading libngs.dll, which uses obfuscation to conceal its operations. The second stage, loadcert.ini, is injected into synchost.exe and performs tasks including persistence and process injection. The kernel-mode driver deployment routine involves decrypting time.ini, verifying privileges, and creating a service to execute the driver, enhancing stealth. The deployed kernel-mode driver, msagent.sys, is digitally signed and helps hide processes, files, and registry objects, making detection more difficult. The latest variant continues to target organizations consistent with previous HoneyMyte activities, with confirmed victims in Myanmar, Mongolia, Pakistan, and Russia, including government entities. The deployment of CoolClient as a secondary backdoor after a PlugX infection indicates a strategic approach to maintain access to compromised systems. The malware is confirmed as a new variant of CoolClient associated with the HoneyMyte threat group, with the kernel-mode driver marking a significant advancement in its capabilities.