US Disrupts China-Linked Hacking Operation Targeting Justice Department, Fed, NASA — SPY, QQQ, DIA Edge Lower

The U.S. Department of Justice (DOJ) seized two domains allegedly used to breach sensitive U.S. government and critical infrastructure networks.

• DOJ seized domains linked to hacking platforms QScan and QTRouter, calling them tools used against critical infrastructure and sensitive networks.
• Court filings identified the China-linked QTFY group as the operator behind the platforms.
• Federal officials did not disclose the extent of damage caused by the intrusions.

The United States said on Wednesday it had disrupted a Chinese hacking operation responsible for break-ins at the U.S. Justice Department, NASA, the Federal Reserve, the U.S. Senate and other sensitive government agencies.

The U.S. Department of Justice (DOJ) said it seized domains associated with two hacking platforms allegedly targeting U.S. critical infrastructure and sensitive networks.

DOJ Seizes Hacking Platform Domains

In a statement, the Justice Department said it had seized domains used by two hacking platforms, known as “QScan” and “QTRouter,” which it said were “used to target U.S. critical infrastructure and other sensitive networks.”

The Justice Department did not detail the damage to the agencies or other targets from the computer intrusions.

An affidavit identified the U.S. Department of Energy, the Department of Health and Human Services (HHS), the National Institutes of Health (NIH), and four unnamed companies in the United States and South Korea as additional victims of the hackers.

“Other targeted networks include those operated by hospitals, telecommunications providers, power companies, financial institutions, and defense contractors,” the affidavit stated.

China-Linked Group Identified

Court documents unsealed in California federal court said that a “People’s Republic of China (PRC) state-sponsored group” known as “QTFY” created and operated the hacking platform.

The affidavit added, “Since at least 2018, QTFY computer infrastructure has been used to compromise critical infrastructure and other sensitive networks in the United States and worldwide.”

According to filings, QTFY was employed by Nanjing Xinjiuwei Network Technology Company, a China-based company.

US Disabled China’s Malicious Software

Attorney General Todd Blanche said, “Federal law enforcement investigated and disabled the PRC’s malicious software, the latest in a series of technical operations to dismantle indiscriminate hacking activities sponsored by the People’s Republic of China.”

Experts who follow Chinese cyber activity say private contractors routinely carry out high-profile intrusions on behalf of various Chinese government agencies, according to a Reuters report.

SPY, QQQ, DIA: Stocktwits Retail Sentiment

Meanwhile, U.S. equities were down in Wednesday afternoon trading. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down 0.15%, the Invesco QQQ Trust ETF (QQQ) was lower by 0.21%, and the SPDR Dow Jones Industrial Average ETF Trust (DIA) had declined by 0.28%.

Retail sentiment on Stocktwits for SPY and QQQ was ‘bearish,’ while it was ‘neutral’ for DIA. 

Also Read: BofA Analyst Says Nvidia Is ‘Checking Every Box’ Ahead Of Earnings, Sees $1B Daily Free Cash Flow By This Time Next Year

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