US Sanctions Chinese Firm Integrity Technology Group Over Flax Typhoon Hacking Ties

Technology

The United States has imposed sanctions on Integrity Technology Group, a Beijing-based cybersecurity firm, in connection with its alleged involvement in facilitating cyberattacks by the state-backed hacking group Flax Typhoon. The sanctions, announced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), come after reports suggesting the firm’s infrastructure was used by Flax Typhoon to target several victims globally between 2022 and 2023.

The U.S. Treasury’s acting Under Secretary for Terrorism and Financial Intelligence, Bradley T. Smith, emphasized the U.S. government’s commitment to holding cybercriminals and their supporters accountable. He stated, “The United States will use all available tools to disrupt these threats and continue working collaboratively to enhance cybersecurity defenses across both public and private sectors.”

Flax Typhoon, a Chinese state-sponsored hacking group, has reportedly been active since 2021, with a particular focus on critical infrastructure organizations in the United States. The group is believed to conduct espionage and other malicious cyber activities. The sanctions against Integrity Technology Group now prohibit the company from engaging in financial transactions with U.S. institutions or businesses.

Attorney General Merrick B. Garland highlighted that the Justice Department is intensifying efforts to target Chinese-backed hacking groups that jeopardize U.S. national security. In a related action, the department announced the destruction of a botnet operated by Chinese hackers, which had compromised consumer devices globally.

Integrity Technology Group’s involvement with cybercriminals extends beyond this recent sanction. In September 2024, the FBI and its Five Eyes allies issued a joint cybersecurity advisory, revealing that the firm was operating a botnet with over 260,000 compromised devices. The group was first identified by Microsoft in 2023, when it was linked to espionage campaigns targeting Taiwanese businesses.

This latest sanction underscores the growing concern over Chinese cyber activities and their implications for U.S. security. As global cyber threats continue to escalate, the U.S. government has signaled its intention to take further action against entities enabling or conducting cyberattacks against American interests.

Picture by DC Studio on Freepik

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