Chinese Hackers Allegedly Bobol US Treasury Office Manage Economic Sanctions

US Treasury Secretary Janet Yellen (photo: x @SecYellen)

The US government revealed a massive hacking incident against the Treasury Department allegedly carried out by hackers allegedly supported by the Chinese government. According to a report by The Washington Post on Wednesday January 1, the cyberattack targeted the Office of Foreign Assets Control (OFAC) and the Office of Financial Research (Office of Financial Research), as well as the office of US Treasury Secretary Janet Yellen.

In a letter sent to lawmakers earlier this week, the US Treasury Department acknowledged that unclassified documents had been stolen. However, the department did not explain in more detail who was the target or unit affected by this attack.

The Washington Post quoted an anonymous source as saying that one of the main focuses of hackers is a Chinese entity that may be subject to sanctions by the US government.

China's response to the allegations, Liu Pengyu, a spokesman for the Chinese Embassy in Washington, rejected the claim. He called the allegations "irrational" and "vilified attacks" on Beijing.

"China is fighting all forms of cyberattacks," Liu said, without directly responding to reports regarding specific targets of this attack.

Companies, individuals, and entities from China have been targeted by US economic sanctions in recent years. These sanctions are used as the main tool of Washington's foreign policy against Beijing.

US Treasury Secretary Janet Yellen previously stated that the US did not rule out imposing sanctions on Chinese banks as part of efforts to limit Russian oil revenues, which are used to fund war in Ukraine.

The Treasury Department report also revealed that hackers were exploiting security loopholes on third-party services, namely BeyondTrust's company. However, more details on how hackers gain access or the extent of the damage caused have not been disclosed.

This incident further worsened relations between the US and China that were already tense. Washington views Beijing as the biggest challenge in US foreign policy.

Observers assess that this hacking incident adds to the complexity of geopolitical dynamics between the two countries. However, allegations against China still require further evidence to strengthen these claims.