U.S. Sanctions Chinese Firm Linked to Cyberespionage Group “Flax Typhoon”

The United States on Friday imposed sanctions on China’s Integrity Technology Group, accusing the company of orchestrating cyberespionage activities under the alias “Flax Typhoon.”

In a statement, the U.S. State Department described Integrity Technology as a significant contractor for the Chinese government with ties to the Ministry of State Security (MSS). The firm’s hackers, it alleged, acted under Beijing’s direction to target critical infrastructure in the U.S. and other countries.

The company has previously been identified by Western officials as being behind Flax Typhoon, a hacking group known for cyber intrusions targeting global networks. FBI Director Christopher Wray, in September, accused the company of conducting intelligence gathering and reconnaissance activities for Chinese security agencies.

Simultaneously, cybersecurity officials from the U.S., United Kingdom, Canada, Australia, and New Zealand released an advisory accusing Integrity Technology of compromising over 250,000 devices worldwide.

China has dismissed the allegations, labeling them as baseless and accusing the U.S. and its allies of drawing “unwarranted conclusions” about Integrity Technology’s operations and its connections to Flax Typhoon.

Flax Typhoon is one of several Chinese cyberespionage groups attracting recent scrutiny for targeting sensitive data and critical infrastructure. Other notable groups include “Volt Typhoon,” which U.S. officials warn could be preparing for potential conflict, and “Salt Typhoon,” implicated in intrusions into U.S. telecommunications networks.

Further concerns arose last week when U.S. Treasury officials revealed that a Chinese hacking group had breached the department’s systems, reportedly compromising data within the Treasury’s sanctions office.

These developments underscore escalating tensions between Washington and Beijing over cyber activities, with U.S. officials signaling increased vigilance and countermeasures against state-backed hacking campaigns.