The U.S. Treasury Department has imposed sanctions on the Beijing-based cybersecurity firm Integrity Technology Group (Integrity Tech) for its alleged involvement in cyberattacks against critical U.S. infrastructure. This decision was announced on January 3, 2025, and follows findings that Integrity Tech supported the Chinese hacking group known as Flax Typhoon, which has been active since at least 2021 and is linked to state-sponsored cyber operations targeting various sectors, including government and telecommunications.

Integrity Tech is accused of facilitating multiple computer intrusion incidents against U.S. victims, providing infrastructure that allowed Flax Typhoon to infiltrate networks and conduct surveillance across four continents. The Treasury's statement indicated that the hacking group utilized Integrity Tech's systems to transmit and receive data during these operations.

The sanctions effectively freeze any assets belonging to Integrity Tech within U.S. jurisdiction, prohibiting American financial institutions from engaging in transactions with the company. This measure is part of a broader strategy to counteract persistent cybersecurity threats from Chinese actors, which have been identified as one of the most significant risks to U.S. national security.

The announcement comes shortly after revelations that Chinese hackers had breached the Treasury's own systems, accessing unclassified information through vulnerabilities in third-party software. This breach underscores the ongoing threat posed by state-sponsored cyber activities targeting critical infrastructure.

Bradley T. Smith, acting under secretary of the Treasury for Terrorism and Financial Intelligence, emphasized that the department would hold malicious cyber actors accountable and continue efforts to strengthen cyber defences across both public and private sectors.

These sanctions reflect a growing concern within the U.S. government regarding the activities of Chinese cyber actors and their implications for national security, as well as a commitment to safeguarding critical infrastructure from foreign threats.

ANI