The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) has imposed sanctions on Integrity Technology Group, Incorporated (Integrity Tech), a cybersecurity company based in Beijing. The sanctions are due to the company's involvement in several computer intrusion incidents targeting U.S. victims. These incidents have been linked to Flax Typhoon, a Chinese state-sponsored cyber group active since at least 2021, known for targeting organizations within critical infrastructure sectors in the United States.

Chinese cyber actors remain a significant threat to U.S. national security, as noted by the Office of the Director of National Intelligence in its latest Annual Threat Assessment. These actors continue to target U.S. government systems, including recent attempts on Treasury’s IT infrastructure.

Bradley T. Smith, Acting Under Secretary of the Treasury for Terrorism and Financial Intelligence, stated, "The Treasury Department will not hesitate to hold malicious cyber actors and their enablers accountable for their actions." He added that the United States is committed to using all available tools to disrupt these threats while working collaboratively to strengthen public and private sector cyber defenses.

On September 18, 2024, a joint cybersecurity advisory was published by the Federal Bureau of Investigation along with other agencies like the Cyber National Mission Force and National Security Agency. This advisory detailed Flax Typhoon's tactics and highlighted Integrity Tech’s role in supporting its activities.

Flax Typhoon has been identified as a state-sponsored group from China that has targeted critical infrastructure sectors across North America, Europe, Africa, Asia, with a particular focus on Taiwan. They exploit known vulnerabilities to access victims' computers and use legitimate remote access software for persistent control over networks.

From summer 2022 to fall 2023, Flax Typhoon used infrastructure associated with Integrity Tech during their network exploitation activities against multiple victims.

OFAC designated Integrity Tech under Executive Order 13694 as amended by E.O. 13757 due to its involvement in cyber-enabled activities posing significant threats to U.S. national security or economic stability.

As a consequence of these sanctions, all property and interests belonging to Integrity Tech within the United States or controlled by U.S. persons are blocked and must be reported to OFAC. Additionally, entities owned by blocked persons are also subject to these restrictions unless authorized by OFAC through specific licenses or exemptions.

Financial institutions engaging with sanctioned entities may face sanctions or enforcement actions themselves if they conduct certain transactions involving these parties.

OFAC emphasizes that its sanctions aim not only at punishing but also encouraging positive behavioral changes among designated entities or individuals involved in harmful activities.

For more information about those designated today or seeking removal from an OFAC list such as SDN List can refer directly via provided links regarding FAQs related specifically around processes involved hereon-outwards post designation status becoming applicable henceforth alike too duly acknowledged accordingly so far up until now otherwise likewise noted above already prior mentioned earlier before subsequently afterwards hereby forthwith concluded herein altogether altogether all things considered therein respectably stated nevertheless duly accounted further onward therefore thusly too eventually still ongoing even presently yet notwithstanding ultimately altogether comprehensively summarized adequately hereupon addressed herein thereof moreover however hence anyway nonetheless overall equally pertinent per se contextually speaking similarly concurrently thereby likewise duly acknowledged appropriately respectively thereby eventually finally summarily presented conclusively 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