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The Sanctioning of Wuhan Xiaoruizhi Science and Technology Company
The Office of Foreign Assets Control (OFAC) of the Department of the Treasury recently imposed sanctions on a Chinese company engaged in hacking activities targeting critical American infrastructure. Wuhan Xiaoruizhi Science and Technology Company, Limited, identified as a Ministry of State Security front company based in Wuhan, China, was the subject of these sanctions. It has been implicated in several malicious cyber operations, operating under the guise of a legitimate business entity.
Indictments and Allegations
Accompanying the sanctions were unsealed indictments of Zhao Guangzong and Ni Gaobin, in addition to five others associated with Wuhan XRZ. These individuals were charged by the Department of Justice for their involvement in nefarious cyber operations directed at U.S. entities within critical infrastructure sectors. The Treasury Department highlighted the direct threat posed to U.S. national security by these activities in a press release.
The allegations stated that the defendants executed global hacking campaigns targeting various groups, including political dissidents, politicians, government officials, and American companies. One of their tactics involved sending over 10,000 deceptive emails designed to trick recipients into providing sensitive information. By disguising these emails as legitimate news articles from reputable sources, the defendants were able to gather data on recipients, such as IP addresses and network details.
“The malicious emails contained hidden tracking links, such that if the recipient simply opened the email, information about the recipient, including the recipient’s location, internet protocol (IP) addresses, network schematics and specific devices used to access the pertinent email accounts, was transmitted to a server controlled by the defendants and those working with them. The defendants and others in the APT31 Group then used this information to enable more direct and sophisticated targeted hacking, such as compromising the recipients’ home routers and other electronic devices.”
The targets of these cyber operations included U.S. government officials working in various departments and agencies, such as the White House, Departments of Justice, Commerce, Treasury, and State, as well as Senators and Representatives from both political parties. Individuals affiliated with election campaigns from major U.S. political parties were also among the targets.
Official Responses
Attorney General Merrick B. Garland condemned these actions, emphasizing the U.S. government’s zero-tolerance stance towards Chinese government-sponsored cyber intimidation tactics. Garland stated that such nefarious activities not only undermine American laws protecting dissidents and businesses but also threaten national security.
Garland further highlighted the extent to which the Chinese government is willing to go in silencing its critics, pointing to the malicious cyber operations as a clear demonstration of their hostile intentions. He stressed the importance of disrupting such dangerous activities and protecting American citizens and critical infrastructure.
Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson echoed Garland’s sentiments, emphasizing the government’s commitment to countering malicious cyber actors and safeguarding national interests. Nelson underscored the need for a comprehensive approach involving close collaboration with international partners to combat such threats effectively.
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