Linux/IRCTelnet, as the underlying malware has been named, borrows code from several existing malicious IoT applications. Most notably, it lifts entire sections of source code from Aidra, one of the earliest known IoT bot packages. Aidra was discovered infecting more than 30,000 embedded Linux devices in an audacious and ethically questionable research project that infected more than 420,000 Internet-connected devices in an attempt to measure the security of the global network. As reported by the anonymous researcher, Aidra forced infected devices to carry out a variety of distributed denial-of-service attacks but worked on a limited number of devices.

Linux/IRCTelnet also borrows telnet-scanning logic from a newer IoT bot known as Bashlight. It further lifts a list of some 60 widely used username-password combinations built into Mirai, a different IoT bot app whose source code was recently published on the Internet. It goes on to add code for attacking sites that run the next-generation Internet protocol known as IPv6.

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Once a device is infected, its IP address is stored so the botnet operator can re-infect it if it suddenly loses contact with the command and control channel.

Source: New, more-powerful IoT botnet infects 3,500 devices in 5 days