There's a new and improved botnet around that's got the tech press all a-flutter.

http://www.securelist.com/en/analysis/204792180/TDL4_Top_Bot :
The ‘indestructible’ botnet Encrypted network connections

One of the key changes in TDL-4 compared to previous versions is an
updated algorithm encrypting the protocol used for communication
between infected computers and botnet command and control servers.
The cybercriminals replaced RC4 with their own encryption algorithm
using XOR swaps and operations.

I think we can predict how this will end...maybe?

It's a curious phrase "using XOR swaps and operations", like something has been left out. Was it "XOR, swaps, and AND operations" fixed by an overzealous word processor? It could mean "swaps implemented with XOR and other XOR operations" (a big difference). Or it could be something redacted (like parts of some images in the article).

Perhaps its a more established algorithm that these researchers didn't recognize.

In any case, if anyone is looking for an analysis project you might see what you could do with it. A successful break of this algorithm could earn you a hearty 'thank you' from 4.5 million infected PC owners. Perhaps we could collaborate on the list.

I don't have a code sample right now but I could ask around. Shouldn't be too hard to find with that many copies around.

- Marsh
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