US Indicts Chinese Spies for Global Hacking Campaign Targeting COVID-19 Research
Key Allegations in the Case
U.S. prosecutors have unsealed an 11-count indictment against two Chinese nationals, Li Xiaoyu (34) and Dong Jiazhi (33), alleging their involvement in a decade-long global hacking operation. The defendants, reportedly working for China’s state intelligence bureau, are accused of stealing terabytes of sensitive data from high-tech companies and government entities worldwide.
Scope of the Cyber Espionage
- Targeted hundreds of organizations across multiple continents
- Compromised networks in the U.S., Australia, South Korea, and Europe
- Exploited unpatched vulnerabilities in web server software
- Installed password-stealing malware to maintain persistent access
- Frequently returned to compromised networks, sometimes years later
COVID-19 Research Among Primary Targets
The indictment reveals particularly concerning allegations that the hackers targeted:
- Over a dozen U.S. companies in Maryland, Massachusetts, and California
- Organizations developing COVID-19 vaccines and treatments
- Military satellite programs and defense contractors
- High-value intellectual property worth “hundreds of millions of dollars”
FBI’s wanted notice for the alleged hackers (Image Credit: FBI)
Modus Operandi and Additional Charges
Prosecutors describe a sophisticated operation where the hackers:
- Conducted attacks on behalf of Chinese intelligence services
- Also engaged in hacking for personal financial gain
- Attempted to extort cryptocurrency from one victim by threatening to leak stolen source code
Government Response and Expert Analysis
John C. Demers, U.S. Assistant Attorney General for National Security, stated:
“China has now taken its place, alongside Russia, Iran and North Korea, in that shameful club of nations that provide a safe haven for cyber criminals in exchange for those criminals being ‘on call’ to work for the benefit of the state.”
Security firm Mandiant, which had tracked the hackers since 2013, confirmed the indictment’s findings align with their research. Ben Read, Mandiant’s Senior Manager of Analysis, noted:
“The pattern described in the indictment… is consistent with what we have seen from other China-nexus groups such as APT41.”
Legal Implications and Challenges
While each defendant faces potential sentences exceeding 40 years if convicted, practical challenges remain:
- Both individuals are believed to be in China
- Extradition to the U.S. appears unlikely
- Case highlights growing tensions in cyber diplomacy
This indictment follows earlier warnings from the FBI and Homeland Security about Chinese attempts to steal coronavirus research data, underscoring the ongoing threat to critical medical and technological infrastructure.
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