US Treasury Sanctions Chinese Cybersecurity Firm Amid Espionage Allegations**

Sat Mar 01 2025 06:34:12 GMT+0200 (Eastern European Standard Time)
US Treasury Sanctions Chinese Cybersecurity Firm Amid Espionage Allegations**

Sanctions imposed after breaches attributed to Flax Typhoon, a Chinese hacking group allegedly supported by the firm.**


The Treasury Department has sanctioned Integrity Technology Group for aiding Chinese hackers in infiltrating US and foreign networks. This development follows recent cybersecurity breaches within US governmental systems, underscoring ongoing tensions over state-sponsored cyberattacks.**

In a significant move, the U.S. Treasury Department announced sanctions against a Beijing-based cybersecurity firm, citing its involvement in aiding a Chinese hacking collective known as Flax Typhoon. The sanctions, issued on Friday, highlight the growing concerns over cyber espionage activities that have reportedly affected U.S. communications systems and extended surveillance across multiple continents.

According to the Treasury announcement, Integrity Technology Group collaborated with the Flax Typhoon hacking group, which has been linked to infiltration efforts targeting foreign networks from mid-2022 to 2023. Furthermore, the Treasury recently informed lawmakers of a related breach experienced by a Chinese intelligence agency, which reportedly gained access to the systems of U.S. government employees and various unclassified documents.

While officials have not confirmed Flax Typhoon’s role in this particular breach, they suggested that sanctions are part of a broader initiative aimed at disrupting Chinese cyber capabilities. The sanctions follow a damaging incident last year involving another hacking group, Salt Typhoon, which infiltrated U.S. telecommunications networks, affecting communications of high-profile political figures, including then-President-elect Donald J. Trump.

Flax Typhoon is among a select group of Chinese cyber actors identified as state-sponsored by major tech firms like Microsoft, with active operations focused on targets in Taiwan and the U.S. As stated by Bradley T. Smith, an acting under secretary of the Treasury, the department is committed to holding cyber malefactors and their facilitators accountable while safeguarding both public and private sector cyber defenses.

Earlier this year, the FBI dismantled a network of 200,000 compromised consumer devices under the influence of Flax Typhoon. With the latest sanctions, financial institutions and individuals are prohibited from engaging with Integrity Technology Group, and its U.S. assets are frozen. Although the specifics of the Treasury's breach remain unclear, the agency is a prime target for cyber campaigns due to its role overseeing the imposition of sanctions and identifying national security threats.

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