The US Treasury Department on Friday imposed sanctions against Beijing-based cybersecurity firm Integrity Technology Group, Inc. over its alleged involvement in a series of cyberattacks targeting critical US infrastructure.

The sanctions, announced by the Office of Foreign Assets Control (OFAC), are a response to Integrity Technology’s purported role in facilitating operations associated with Flax Typhoon, a cyber group believed to be backed by the Chinese government. This group has been active since at least 2021. The Treasury’s announcement comes shortly after revelations that Chinese hackers had breached the US Treasury’s systems, accessing unclassified information through vulnerabilities in third-party software.

Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith emphasized: “The Treasury Department will not hesitate to hold malicious cyber actors and their enablers accountable for their actions.”

The sanctions effectively block any assets that Integrity Technology may hold within US jurisdiction and prohibit American financial institutions from engaging in transactions with the company. This move is part of a broader strategy by the US government to counteract persistent cybersecurity threats and hold those involved in malicious activities accountable.

The rise of state-sponsored cyber threats from China has been a significant concern for US national security agencies. Reports indicate that Chinese cyber actors are among the most active and persistent threats, frequently targeting government systems and critical infrastructure. In recent years, incidents involving Chinese hackers have escalated further, prompting a series of sanctions and policy responses from the US government aimed at safeguarding national interests.