In a significant move, the U.S. Treasury Department has sanctioned a Beijing-based cybersecurity company blamed for facilitating a Chinese hacking group’s infiltration into U.S. communications systems.
Treasury Department Imposes Sanctions on Chinese Cybersecurity Firm for Supporting Hacking Group
Treasury Department Imposes Sanctions on Chinese Cybersecurity Firm for Supporting Hacking Group
Treasury takes action against Integrity Technology Group linked to Flax Typhoon cyberattacks.
The Treasury Department announced sanctions on Friday against Integrity Technology Group, a Beijing-based firm, accusing it of providing support to the Chinese hacking group Flax Typhoon. This action comes in the wake of allegations that Flax Typhoon conducted surveillance and infiltrated networks across multiple continents from the summer of 2022 to 2023. The Treasury Department's announcement revealed that this hacking group regularly utilized the infrastructure of Integrity Tech, highlighting the firm’s involvement in the breaches.
The sanctions were also prompted by the discovery that a Chinese intelligence agency had exploited vulnerabilities within Treasury systems, compromising government employees' workstations and accessing unclassified documents. It remains unclear, however, if Flax Typhoon was directly responsible for this breach.
Bradley T. Smith, acting under secretary of the Treasury, reaffirmed the U.S. government’s commitment to combating cyber threats, stating, “The Treasury Department will not hesitate to hold malicious cyberactors and their enablers accountable.” Earlier this year, the F.B.I. dismantled a network containing 200,000 consumer devices that had been infected with malware overseen by Flax Typhoon.
The repercussions of the sanctions are significant, as they generally prohibit U.S. financial institutions and citizens from engaging in transactions with Integrity Technology Group and freeze its assets within the United States. These efforts are focused on disrupting state-sponsored cyber capabilities, particularly given the sensitive nature of the targeted sectors.
Overall, this move underscores the growing concerns regarding cybersecurity and the ongoing threats posed by state-sponsored hackers, specifically those linked to Chinese intelligence operations.
The sanctions were also prompted by the discovery that a Chinese intelligence agency had exploited vulnerabilities within Treasury systems, compromising government employees' workstations and accessing unclassified documents. It remains unclear, however, if Flax Typhoon was directly responsible for this breach.
Bradley T. Smith, acting under secretary of the Treasury, reaffirmed the U.S. government’s commitment to combating cyber threats, stating, “The Treasury Department will not hesitate to hold malicious cyberactors and their enablers accountable.” Earlier this year, the F.B.I. dismantled a network containing 200,000 consumer devices that had been infected with malware overseen by Flax Typhoon.
The repercussions of the sanctions are significant, as they generally prohibit U.S. financial institutions and citizens from engaging in transactions with Integrity Technology Group and freeze its assets within the United States. These efforts are focused on disrupting state-sponsored cyber capabilities, particularly given the sensitive nature of the targeted sectors.
Overall, this move underscores the growing concerns regarding cybersecurity and the ongoing threats posed by state-sponsored hackers, specifically those linked to Chinese intelligence operations.
