Chinese cybersecurity firm hit by US sanctions over ties to Flax Typhoon hacking group

Image credit: Shutterstock (Image credit: Shutterstock)

The US Treasury has sanctioned Integrity Technology Group
It claims the company was used in attacks on Western entities
Both Integrity and the Chinese government criticize the decision

A Chinese technology company allegedly tied to the notorious state-sponsored threat actor known as Flax Typhoon has been placed on the US blacklist.

In a press release, the US Department of Treasury said it issued sanctions against Integrity Technology Group, “for its role in multiple computer intrusion incidents against U.S. victims.”

Integrity Technology Group is also known as Yongxin Zhicheng Technology Group. It is described as a cybersecurity company based in Beijing, China, specializing in producing and selling cybersecurity products. That includes network shooting range platforms, security control and honeypot products, security tools, and security protection solutions.

"Smear campaign"

According to the Treasury Department, between the summer of 2022 and fall 2023, Flax Typhoon actors used Integrity Tech’s infrastructure during their computer network exploitation activities against “multiple victims”.

“During that time, Flax Typhoon routinely sent and received information from Integrity Tech infrastructure,” the press release notes.

The Chinese government has slammed the decision, calling it a smear campaign. Commenting on the news, Chinese Foreign Ministry spokesperson Guo Jiakun said the country has cracked down on cyber attacks and that Washington was using the issue to “defame and smear China,” AP reports.

“For some time now, the U.S. side has been playing up so-called Chinese cyber attacks and has even initiated illegal unilateral sanctions against China,” Guo said. “China firmly opposes this and will take necessary measures to safeguard its legitimate rights and interests.”

At the same time, Integrity Technology Group said the sanctions were not based on facts: “The company firmly opposes the U.S. Treasury Department’s unwarranted accusations and Illegal unilateral sanctions on the company,” the company said in a statement to the Shanghai Stock Exchange.

Flax Typhoon is known for conducting cyber espionage campaigns targeting critical infrastructure, government entities, and private organizations, primarily in the United States. The group employs stealthy tactics to maintain long-term access to networks, often exploiting vulnerabilities and using compromised credentials to avoid detection.

Via SiliconANGLE

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Sead is a seasoned freelance journalist based in Sarajevo, Bosnia and Herzegovina. He writes about IT (cloud, IoT, 5G, VPN) and cybersecurity (ransomware, data breaches, laws and regulations). In his career, spanning more than a decade, he’s written for numerous media outlets, including Al Jazeera Balkans. He’s also held several modules on content writing for Represent Communications.