US Sanctions Chinese Cybersecurity Firm Linked to Notorious Hacking Group Salt Typhoon

Max Carter

Max Carter

January 17, 2025 · 4 min read
US Sanctions Chinese Cybersecurity Firm Linked to Notorious Hacking Group Salt Typhoon

The US government has taken a significant step in combating cyber threats by imposing sanctions on a Chinese organization with direct links to Salt Typhoon, a notorious hacking group responsible for the largest telecommunications hack in US history.

The Treasury Department's Office of Foreign Assets Control (OFAC) announced on Friday that it had sanctioned Sichuan Juxinhe Network Technology, a China-based cybersecurity company, for its alleged involvement in the exploitation of US telecommunication and internet service provider companies. According to OFAC, the company has "direct involvement" in the hacking activities of Salt Typhoon, which infiltrated at least nine US telecom and internet providers, including AT&T and Verizon, to gain access to the private communications of senior US government officials and political figures.

The hackers also gained access to the systems used by law enforcement agencies for court-authorized collection of customer data, potentially accessing sensitive data such as identities of Chinese targets of US surveillance. The scope of the hack is alarming, and the sanctions imposed on Sichuan Juxinhe Network Technology are a clear indication of the US government's commitment to holding accountable those responsible for malicious cyber activities.

In addition to the sanctions on Sichuan Juxinhe Network Technology, OFAC also announced sanctions against Yin Kecheng, a cyber actor in Shanghai, who is allegedly responsible for the recent widespread hack of the US Treasury. The hack, which took place in late December, saw hackers use a private key stolen from BeyondTrust, a cybersecurity company, to gain remote access to certain Treasury employee workstations. The cyberattack allowed hackers to target various departments within the US Treasury, including its sanctions office.

According to OFAC, Yin Kecheng has been a cyber actor for over a decade and is affiliated with China's Ministry of State Security, an intelligence and security agency responsible for the country's foreign intelligence collection. The sanctions imposed on Yin Kecheng are a clear indication of the US government's commitment to protecting its interests from malicious cyber activities.

U.S. Treasury official Adewale O. Adeyemo stated that "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." The statement underscores the US government's commitment to combating cyber threats and holding accountable those responsible for malicious activities.

This is not the first time the US government has taken action against Chinese cybersecurity companies with alleged ties to government-backed hacking groups. Earlier this month, the US government sanctioned another China-based cybersecurity company, Integrity Technology Group, over its alleged links to a government-backed hacking group known as Flax Typhoon. The Treasury said the company had been involved in "multiple computer intrusion incidents against U.S. victims," including U.S. critical infrastructure.

The sanctions imposed on Sichuan Juxinhe Network Technology and Yin Kecheng are a clear indication of the US government's commitment to protecting its interests from malicious cyber activities. As cyber threats continue to evolve and become more sophisticated, it is essential for governments and organizations to take proactive measures to combat these threats and hold accountable those responsible for malicious activities.

The implications of these sanctions are far-reaching, and they underscore the need for increased cooperation and collaboration between governments and organizations to combat cyber threats. As the threat landscape continues to evolve, it is essential for stakeholders to remain vigilant and proactive in protecting their interests from malicious cyber activities.

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