U.S. Treasury Imposes Sanctions Over Chinese Cyber Attack

The U.S. Treasury Department has imposed sanctions on Chinese entities following a major cyberattack that breached its own systems and those of major U.S. telecom companies.

At a Glance

  • U.S. Treasury sanctions target Chinese hacker and cybersecurity company
  • Sanctions respond to hack of U.S. telecom firms and Treasury Department
  • Chinese hacking group “Salt Typhoon” accessed private communications of Americans
  • Senior U.S. officials and political figures affected by the breach
  • China denies involvement in the cyberattack

Treasury Takes Action Against Chinese Cyber Threats

In a decisive move to counter cyber espionage, the U.S. Treasury Department has announced sanctions against Chinese entities linked to a major cyberattack. The breach, which targeted American telecommunications companies and infiltrated the Treasury’s own network, has prompted a strong response from U.S. officials.

The sanctions specifically target a Chinese hacker with ties to Beijing’s Ministry of State Security and a China-based cybersecurity company associated with the hacking group known as Salt Typhoon. This group is believed to have gained access to private texts and phone conversations of an unknown number of Americans, including senior U.S. government officials and political figures.

The Treasury’s actions prevent the named hacker, Yin Kecheng, from conducting business in the United States. Additionally, Sichuan Juxinhe Network Technology Co. LTD, the implicated cybersecurity company, faces similar restrictions. These measures aim to hold accountable those responsible for the cyber intrusion and deter future attacks.

“The Treasury Department will continue to use its authorities to hold accountable malicious cyber actors who target the American people, our companies, and the United States government, including those who have targeted the Treasury Department specifically,” Deputy Treasury Secretary Adewale Adeyemo said.

This is not the first time the Treasury has taken such action. Previously, another Beijing-based cybersecurity company was sanctioned for hacking U.S. infrastructure, highlighting the ongoing cybersecurity tensions between the United States and China.

Details of the Breach

The Treasury Department learned of the hack on December 8, revealing the extent of the breach. According to BeyondTrust, a key used to secure a cloud-based service was stolen, enabling remote access to employee workstations. The company stated that the key was “used by the vendor to secure a cloud-based service used to remotely provide technical support.”

This sophisticated attack underscores the vulnerability of even high-level government systems to cyber threats. The breach not only compromised sensitive information but also demonstrated the potential for foreign entities to access private communications of American citizens and officials.

Despite the evidence presented by U.S. authorities, the Chinese government has denied any involvement in the hacking allegations. This response is consistent with China’s previous stances on accusations of cyber espionage, further straining diplomatic relations between the two nations.

How can we ever resolve these problems if China just flat-out denies it every time?

Something bad is happening…