United States Sanctions Chinese Firm Linked to ‘FaxHeat’ Cybercrime Group

US Targets Chinese Firm Over Reported Hacking Ties

The US Treasury Department has slapped fresh cybersecurity sanctions on Integrity Technology Group, a Chinese software firm, over allegations that it played a key role in multiple hacking incidents targeting US critical infrastructure since 2021.

Based in Beijing, Integrity Technology Group has previously been accused by Western officials of being behind an important Chinese hacking group known as "Flax Typhoon". In 2021, then-FBI Director Christopher Wray claimed that while the company posed as a tech firm, it also gathered intelligence and conducted recon for Chinese government security agencies. Chinese officials at the time dismiss the claims as "unjustified" and "baseless."

The latest sanctions, announced this Friday, come just days after the Biden administration revealed that Chinese hackers had remotely accessed several workstations and unclassified documents at the US Treasury Department.

According to the Treasury, the hackers exploited a stolen key used by the software provider, BeyondTrust, to secure its cloud-based service. However, these sanctions do not appear to be directly related to the December 8th hack.

Matthew Miller, spokesperson for the US State Department, said Integrity Tech was a major contractor for the Chinese government’s Ministry of State Security. He added that hackers linked to the company, known as "Flax Typhoon" in private sector, were working under Chinese government direction, targeting critical infrastructures in the US and abroad.

The US Treasury’s Under Secretary, Bradley Smith, stated that the US would dismantle cyber threats while working collaboratively to bolster public and private sector cyberdefenses. He also warned that the Treasury would hold cybercriminals and their facilitators accountable.

The sanctions block access to US properties and bank accounts, and prohibit those sanctioned from doing business with Americans. The US continues to grapple with the fallout from Operation Salt Typhoon, a massive Chinese cyberespionage campaign that gave Beijing access to private text messages and phone conversations of numerous unnamed Americans.

(With information from AFP, AP, and Reuters)