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The Finance Base
OFAC

Treasury Sanctions Two China-Linked Actors Over Its Network Breach and Salt Typhoon Telecom Hacks

Treasury’s January 2025 sanctions addressed two distinct cyber incidents: a breach involving Treasury employee workstations and the Salt Typhoon campaign against telecom infrastructure.

By TheFinanceBase Team 3 min read
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On January 17, 2025, the U.S. Treasury Department sanctioned Yin Kecheng and Sichuan Juxinhe Network Technology Co., LTD. U.S. authorities tied Yin to a separate compromise of Treasury’s own network and said Sichuan Juxinhe was directly involved in Salt Typhoon, a campaign against U.S. telecommunications and internet-service-provider infrastructure. The two incidents were addressed in one announcement, but they were not the same hack.

Who Treasury sanctioned—and what each was accused of

Yin Kecheng

Treasury identified Yin as a Shanghai-based cyber actor and associated him with the recent compromise of the Departmental Offices network at the Treasury Department. The State Department separately described Yin as affiliated with China’s Ministry of State Security.

Sichuan Juxinhe Network Technology Co., LTD.

Treasury said the Sichuan-based company had direct involvement in Salt Typhoon, which compromised network infrastructure at multiple major U.S. telecommunications and internet-service-provider companies. The announcement did not assign the company the Treasury-network breach attributed to Yin.

How the Treasury network breach differed from Salt Typhoon

The distinction matters: one incident involved access to Treasury employee workstations through a compromised remote-support service; Salt Typhoon targeted commercial communications infrastructure.

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Aspect Treasury Department compromise Salt Typhoon campaign
Victim environment Treasury Departmental Offices network Telecommunications and internet-service-provider infrastructure
Access described A stolen key for a BeyondTrust cloud-based remote-support service enabled remote access to several Treasury employee workstations. Network intrusions; the sanctions announcement did not specify a single access method.
Information or systems at issue Employee workstations. Treasury told lawmakers there was no evidence the actor continued to access Treasury information at the time of that report. Communications and call records were among the information officials said may have been accessed.
U.S. attribution in the sanctions announcement Yin Kecheng Sichuan Juxinhe had direct involvement

Treasury learned of its separate incident on December 8, 2024, after BeyondTrust reported that a key securing the cloud-based remote-support service had been stolen. The reported remote access was to several employee workstations; that fact alone does not establish what information was taken or viewed.

How many telecom companies were affected?

As of a December 4, 2024, White House briefing, at least eight U.S. telecommunications firms and dozens of nations had been affected by Salt Typhoon. Officials said communications of senior government officials and prominent political figures may have been accessed. Those are dated minimums and reported possibilities, not a final count or confirmation that every named category of communication was obtained. Investigations were continuing, and not every affected company or accessed communication had been publicly identified.

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Treasury said Salt Typhoon had been active since at least 2019 and had compromised numerous U.S. communications-sector companies. That timeframe describes the activity Treasury attributed to the campaign; it does not mean every affected organization was compromised continuously from 2019 onward.

What OFAC sanctions do

The Office of Foreign Assets Control (OFAC) designations block property and interests in property belonging to the designated persons when that property is in the United States or in the possession or control of U.S. persons. Entities owned 50% or more by blocked persons are also blocked.

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Transactions by U.S. persons or within the United States involving designated persons are generally prohibited unless authorized or exempt. The practical effect is to restrict access to property and covered dealings connected to the U.S.; the announcement does not itself establish that victims will receive compensation or identify every person whose communications were accessed.

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Other U.S. responses

The State Department’s Rewards for Justice program offered up to $10 million for information leading to the identification or location of qualifying foreign-government-directed cyber actors targeting U.S. critical infrastructure. The maximum applies to qualifying information; it is not a payment automatically owed to anyone affected by either incident.

Deputy Treasury Secretary Adewale O. Adeyemo said: “The Treasury Department will continue to use its authorities to hold accountable malicious cyber actors who target the American people, our companies, and the United States government, including those who have targeted the Treasury Department specifically.”

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