Internet Query Files (IQY) were used to deliver a new variant of Paradise ransomware, as reported by Last Line. The said file type has not been associated with this ransomware family before.
In the past, IQY files were typically used in other malware campaigns such as the Necurs botnet that distributes IQY files to deliver FlawedAmmy RAT. Bebloh and Ursnif also spreads via IQY and PowerShell.
Source: Trend Micro