U.S. Treasury Sanctions Chinese Cybersecurity Firm Over Hacking Allegations

In a move to bolster cybersecurity, the U.S. Treasury Department sanctioned Beijing-based Integrity Technology Group for its connections to the Flax Typhoon hacking group, following a series of cyber breaches that have raised security concerns.

The U.S. Treasury Department announced sanctions on a Beijing-based cybersecurity firm, Integrity Technology Group, citing its involvement in aiding a Chinese hacking collective known as Flax Typhoon. According to the department, the firm played a role in facilitating malicious activities that targeted U.S. communications systems and surveilled networks across multiple continents.

This action follows a recent disclosure by the Treasury Department, which alerted lawmakers about a successful cyber intrusion conducted by a Chinese intelligence agency that compromised its systems. Though the department did not confirm if Flax Typhoon was involved in the breach of its systems, the sanctions appear part of a broader strategy to counter cyber threats emanating from China.

Flax Typhoon, active since 2021, has been linked to various acts of cyber espionage, particularly focusing on Taiwan and the United States. Notably, reports from the FBI revealed the dismantling of a network of around 200,000 devices globally that had been hijacked by Flax Typhoon malware, signifying a widespread breach of security.

Bradley T. Smith, acting under secretary for the Treasury, emphasized the government's intent to hold cyber actors accountable, reinforcing the commitment to enhance defenses in both public and private sectors. The sanctions against Integrity Technology Group will restrict financial transactions with the firm and freeze its assets located in the United States.

The breaches orchestrated by state-sponsored groups, including the previously reported Salt Typhoon incident, highlight the increasing security risks that U.S. governmental bodies face from foreign hackers, underlining the importance of vigilant cybersecurity measures. The Office of Foreign Assets Control within the Treasury is particularly vulnerable due to its significant role in sanctioning individuals and organizations perceived as threats to national security.