U.S. sanctions Chinese cybersecurity firms linked to ransomware attacks

US imposes sanctions on China Internet security Sichuan Silent Information Technology Company planned a large-scale cyber attack. Reuters reported that U.S. officials said the attack may have resulted in deaths. The Chengdu-based company and one of its employees, Guan Tianfeng, deployed malware In April 2020, more than 80,000 firewalls were breached at thousands of companies around the world.
In a Justice Department indictment unsealed Tuesday, Guan, known online as “gxiaomao,” was separately charged with conspiracy to commit computer and wire fraud. The FBI is offering a $10 million reward for information about the 30-year-old man, his company or their online operations.

What is the company accused of?

The software not only steals data, but also launches ransomware attacks that paralyze corporate networks by encrypting critical information. The Treasury Department noted that three dozen firewalls are part of critical infrastructure and “could cause serious injury or loss of life” if the potential consequences of an attack are not mitigated.
One targeted energy company was actively involved in oil drilling during the attack and was at risk of equipment failure. The U.S. Treasury Department emphasized that if the cyber intrusion was successful, it “could cause the oil drilling platform to malfunction,” which could lead to catastrophic consequences.

not the first time

This is not the first time the company has faced accusations of malicious activity. In 2021, Meta Platforms, the parent company of Facebook and Instagram, accused Sichuan Silence of running an online influence campaign. The campaign involved a fabricated biologist claiming that the United States was intervening to find the origins of COVID-19.
Ross McKerchar, chief information security officer at British cybersecurity company Sophos, whose routers were also targeted, said the hackers showed “relentless determination.” Sophos previously reported that the attacks reflected “a level of malicious activity rarely seen” in its nearly 40-year history.

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What is the company accused of?not the first time

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