U.S. Sanctions Chinese Cyber Firm Over Cyberattack That Could Have Caused Fatalities

The United States has sanctioned the Chengdu-based Sichuan Silence Information Technology Company and one of its employees, Guan Tianfeng, over a sweeping cyberattack that Treasury officials warn could have had deadly consequences.

In a statement released on Tuesday, the U.S. Treasury revealed that Sichuan Silence deployed malicious software to over 80,000 firewalls operated by thousands of companies worldwide in April 2020. The malware not only stole sensitive data but also installed ransomware that encrypted corporate networks, leaving them inoperable.

Over 23,000 of the compromised firewalls were located in the United States, including 36 safeguarding critical infrastructure systems. Without timely patches or swift cybersecurity intervention, these intrusions could have had devastating effects.

According to the Treasury, one energy company targeted in the campaign was engaged in active drilling operations during the attack. The malicious activity, had it not been mitigated, “could have caused oil rigs to malfunction,” potentially resulting in “serious injury or the loss of human life.”

The U.S. Department of Justice has also charged Guan Tianfeng with conspiracy to commit computer and wire fraud, according to an indictment made public on Tuesday, as reported by Reuters.

The FBI is offering a $10 million reward for information on Guan, also known online as “gxiaomao,” his company, or their hacking activities, said Reuters.

The sanctions freeze any U.S.-based assets of Sichuan Silence and Guan, while generally prohibiting U.S. banks, companies, or individuals from conducting business with them, reported Aljazeera.

When contacted, Sichuan Silence did not respond to inquiries, and Reuters was unable to locate Guan for comment. Beijing has consistently denied any involvement in hacking or other malicious cyber activities.

Ross McKerchar, chief information security officer of the UK-based cybersecurity firm Sophos, whose routers were among those targeted in the 2020 attack, condemned the hackers’ persistence. “The attackers showed relentless determination,” he said in a statement reported by Reuters.