Chinese cybersecurity company hit by US sanctions over ties to hacking group Flax Typhoon
- The US Treasury Department has imposed sanctions on Integrity Technology Group
- It is alleged that the company was used in attacks on Western entities
- Both Integrity and the Chinese government have criticized the decision
A Chinese technology company alleged to have ties to the infamous state-sponsored threat actor known as Flax Typhoon has been placed on the US blacklist.
In a press release, the U.S. Treasury Department said it has 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 the production and sale of cybersecurity products. That includes networked shooting range platforms, security monitoring and honeypot products, security tools and security protection solutions.
“Smear campaign”
According to the Ministry of Finance, Flax Typhoon actors used Integrity Tech’s infrastructure during their computer network exploitation activities against “multiple victims” between the summer of 2022 and the fall of 2023.
“During that time, Flax Typhoon routinely sent and received information from the Integrity Tech infrastructure,” the press release said.
The Chinese government has rejected the decision, calling it a smear campaign. Reacting to the news, Chinese Foreign Ministry spokesman Guo Jiakun said the country had cracked down on cyber attacks and that Washington was using the issue to “slander and defame China.” AP reports.
“The US side has been playing up so-called Chinese cyber attacks for some time and has even initiated illegal unilateral sanctions against China,” Guo said. “China strongly opposes this and will take the 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 unfounded accusations and illegal unilateral sanctions against 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 agencies and private organizations, primarily in the United States. The group uses stealthy tactics to maintain long-term access to networks, often exploiting vulnerabilities and using compromised credentials to avoid detection.
Via Silicon ANGLE