Kasperskay said: "Loapi aggressively fights any attempts to revoke device manager permissions.
"If the user tries to take away these permissions, the malicious app locks the screen and closes the window with device manager settings."
Loapi then conducts numerous adverse activities such as mining for the cryptocurrency Monero.
When testing this in the lab Kasperskary found that the battery of the smartphone would overheat and smoke due to the large amount of processing power it takes to mine digital currencies.
"The surprisingly unexpected risk which this malware brings is that even though it can't cause direct financial damage to the user by stealing their credit card data.
"It can simply destroy the phone," Nikita Buchka, a security expert at Kaspersky Lab, told Trusted Reviews.
"This is not something you would expect from an Android Trojan, even a sophisticated one."
The Loapi virus can also use the phone in denial-of-service attacks which can manipulate how websites are used.
Kaspersky said to avoid the Loapi virus users should only download apps available from official stores and to use reliable anti-virus software.
Kaspersky's own software has come under fire recently as governments have advised against using the Russian firm's software on internal networks over fears of spying.
Earlier this week Kaspersky asked US courts to lift the federal ban on their software, explaining that the company is not under Kremlin influence and poses no security threat to America.