US Imposes Sanctions on Chinese Cybersecurity Firm and Shanghai-Based Actor

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has imposed sanctions against a Chinese cybersecurity company and a Shanghai-based cyber actor for their alleged links to the Salt Typhoon group and the recent compromise of the federal agency.

Alleged Links to Salt Typhoon Group and Federal Agency Compromise

"People’s Republic of China-linked (PRC) malicious cyber actors continue to target U.S. government systems, including the recent targeting of Treasury’s information technology (IT) systems, as well as sensitive U.S. critical infrastructure," the Treasury said in a press release.

Target of Sanctions

The sanctions target Yin Kecheng, who is assessed to have been a cyber actor for over a decade and affiliated with China’s Ministry of State Security (MSS). Kecheng, per the Treasury, was associated with the Salt Typhoon group and the Infrastructure Security Agency (CISA), which stated that "China’s sophisticated and well-resourced cyber program represents the most serious and significant cyber threat to our nation, and in particular, U.S. critical infrastructure."

Background on Salt Typhoon

Easterly also revealed that Salt Typhoon was first detected on federal networks, much before the cyber espionage group burrowed into the networks of AT&T, Lumen Technologies, T-Mobile, Verizon, and other providers.

Previous Sanctions by the Treasury

The designations are just the latest in a long list of moves made by the Treasury in a bid to combat malicious cyber activity by Chinese threat actors. Previously sanctioned by the agency are three other companies, Integrity Technology Group, Sichuan Silence Information Technology, and Wuhan Xiaoruizhi Science and Technology Company.

Conclusion

The sanctions are part of the Treasury’s efforts to combat malicious cyber activity by Chinese threat actors. The agency has imposed sanctions on several Chinese companies and individuals in recent months, highlighting the growing concern over the threat posed by China’s sophisticated cyber program.

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