U.S. and Britain accuse China-linked hackers of ‘malicious’ cyber campaigns, announce sanctions

Published

8 months ago

March 25, 2024

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BeeBright | Getty Images

LONDON — The U.S. and U.K. on Monday accused hackers linked to the Chinese state of being behind “malicious” cyber campaigns targeting political figures, in moves expected to stoke tensions with Beijing.

The British government also alleged that China-affiliated hackers were behind an attack that saw the data of millions of voters accessed.

“I can confirm today that Chinese state-affiliated actors were responsible for two malicious cyber campaigns targeting our democratic institutions and parliamentarians,” British Deputy Prime Minister Oliver Dowden said in a speech to Parliament on Monday.

Dowden attributed a hack on the Electoral Commission, the independent agency tasked with setting standards for how U.K. elections should be run, to a China state-affiliated actor. The campaigns were said to have taken place between 2021 and 2022.

The attack was identified by the Electoral Commission in October 2022, but wasn’t disclosed until last year. Hackers accessed the names and addresses of anyone in Britain registered to vote between 2014 and 2022, the Electoral Commission said in a 2023 public notice.

A spokesperson for the Chinese Embassy in the U.K. said allegations of China being behind cyberattacks in the U.K. were “completely fabricated and malicious slanders.”

“We strongly oppose such accusations,” the Chinese Embassy spokesperson told reporters at a press briefing Monday, according to an update that was posted on its website. “China has always firmly fought all forms of cyber attacks according to law.”

‘A clear pattern’

Dowden said the U.K. believes China to be behind attempted reconnaissance on the email accounts of U.K. lawmakers in the summer of 2021. He accused the Chinese hacking group APT31 of being behind this attack.

Cybersecurity firm Mandiant, which is owned by Google, describes APT31 as a “China-nexus cyber espionage actor focused on obtaining information that can provide the Chinese government and state-owned enterprises with political, economic, and military advantages.”

Dowden added that attempts to compromise the email accounts of U.K. lawmakers were however “unsuccessful.”

“We want now to be as open as possible with the House and the British public,” Dowden said. “This is the latest in a clear pattern of hostile activity originating in China.”

Dowden said the U.K. had sanctioned two individuals residing within China, as well as an entity affiliated with APT31.

U.S. hits out at China

Separately, the U.S. Justice Department unsealed an indictment Monday accusing Chinese state-linked hackers of being behind cyber campaigns targeting U.S. businesses, government officials and politicians.

The DOJ charged seven Chinese nationals, Ni Gaobin; Weng Ming; Cheng Feng; Peng Yaowen; Sun Xiaohui; Xiong Wang; and Zhao Guangzong, with conspiracy to commit computer intrusions and conspiracy to commit wire fraud for involvement in a China-based hacking group that spent 14 years targeting U.S. and foreign critics, businesses and political officials.

These individuals operated as part of the APT31 hacking group, the DOJ said.

“The Justice Department will not tolerate efforts by the Chinese government to intimidate Americans who serve the public, silence the dissidents who are protected by American laws, or steal from American businesses,” Attorney General Merrick B. Garland said in a statement Monday.

“This case serves as a reminder of the ends to which the Chinese government is willing to go to target and intimidate its critics, including launching malicious cyber operations aimed at threatening the national security of the United States and our allies,” Garland added.

Geopolitical tensions

The announcements from the U.K. and U.S. are likely to draw the ire of Beijing.

Relations between the U.K. and China have soured over the years, particularly on the tech front, following actions from the British government designed to stem national security risks from Chinese technology companies.

“The impact of such a breach on UK-Sino relations could be profound,” Javvad Malik, lead security awareness advocate at cybersecurity firm KnowBe4, told CNBC on Monday via email.

“It’s likely to escalate tensions, leading to diplomatic strain and potentially resulting in retaliatory actions in the cyber domain or other areas of bilateral cooperation.”

Malik added that the situation “necessitates a robust response not only in terms of securing compromised systems and preventing further breaches but also in reinforcing the international legal and norms-based systems governing state behavior in cyberspace.”

“To mitigate the aftermath and prevent future incidents, it’s crucial for nations to invest in stronger cybersecurity defenses, international collaboration, and developing capabilities to deter adversaries in the cyberspace domain,” he said.

Some hawkish lawmakers have been pressuring the U.K. government to take tougher action on China.

The Inter-Parliamentary Alliance on China, a cross-border group of lawmakers seeking to reform policy on China, said Monday in a post on social media platform X that they, along with other members of Parliament, activists and dissidents, have been “subjected to harassment, impersonation, and attempted hacking from China for some time.”

“We take this opportunity to highlight that, though extremely unwelcome, our discomfort pales in comparison to Chinese dissidents who risk their lives to oppose the Chinese Communist Party. It is high time that they received greater support for their host governments,” the group said.

In 2020, for example, the U.K. government banned telecommunications equipment from Huawei in its 5G mobile network, citing spying concerns. Huawei, for its part, denies the allegations and says it wouldn’t cooperate with China to spy on Western communications.

Relations between the U.S. and China have also been under significant pressure. U.S. lawmakers recently approved a controversial bill that could lead to TikTok being blocked in the U.S. if it doesn’t break with its Chinese parent ByteDance.

If the bill becomes law, TikTok would have a little less than six months to divest from ByteDance, or be banned from apps and webhosting sites in the U.S.

Technology

Dogecoin surges 20% after Trump announces a Department of Government Efficiency — DOGE

Published

4 hours ago

November 13, 2024

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Dogecoin surges 20% after Trump announces a Department of Government Efficiency — DOGE

Chesnot | Getty Images

Dogecoin shot higher on Tuesday night, extending its postelection surge after President-elect Donald Trump formally announced the creation of the Department of Government Efficiency, which he referred to as “DOGE” in his statement.

Tesla CEO Elon Musk and Vivek Ramaswamy, former Republican presidential candidate and Strive Asset Management co-founder, will lead the department, Trump said in a statement. Together, they “will pave the way for my Administration to dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”

Dogecoin was last up nearly 20%. It has been one of the biggest winners in the postelection rally, gaining 153% since election day compared to bitcoin’s 30% rise in the same period. It also shot past XRP this week to become the sixth largest cryptocurrency by market cap.

Dogecoin jumped after President-elect Donald Trump announced the creation of the Department of Government Efficiency, or “DOGE.”

Memecoins are seen as a gauge of retail interest and risk appetite in crypto. When memecoin activity ramps up, it usually indicates that retail investors are participating and have an appetite to speculate further out on the risk curve.

Trump initially floated the idea of an efficiency commission in September. Since then, Musk — who has called himself the “Dogefather” in the past and has been known to make public comments about the memecoin that influence its price — has posted on his social media platform X, referring to the commission as the “Department of Government Efficiency” or “D.O.G.E.”

Dogecoin gained relevance in 2021 following Musk’s endorsement and continuous hype on social media, which has since become a big catalyst for the coin. In May that year, Musk’s posts fueled dogecoin’s rally to its all-time high of 67 cents, per Coin Metrics. Though his appearance at the time on SNL, in which he called dogecoin “a hustle,” sent its price crashing down.

The rest of the crypto market was on pause from its postelection rally. Bitcoin was trading flat at about $87,000, after briefly touching $90,000 in late afternoon trading. Crypto stocks Coinbase and MicroStrategy were lower by 1% and 2%, respectively, in extended trading.

Don’t miss these cryptocurrency insights from CNBC PRO:

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Trump says Musk and Ramaswamy will lead government efficiency group

Published

5 hours ago

November 13, 2024

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Trump says Musk and Ramaswamy will lead government efficiency group

Elon Musk embraces Donald Trump during a campaign rally in Butler, Pennsylvania on Oct. 5, 2024.

Anna Moneymaker | Getty Images

President-elect Donald Trump said Tuesday that Elon Musk and former Republican presidential hopeful Vivek Ramaswamy will lead an efficiency group when his second term begins in January.

Trump wrote in a post that the Department of Government Efficiency, or DOGE, will “become, potentially, ‘The Manhattan Project’ of our time.” He also said the group would, “pave the way” for his next administration to “dismantle Government Bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure Federal Agencies.”

Trump didn’t specify where cuts will take place or when the department may be formed. Congress hasn’t created or funded such an office. He said the group’s “work will conclude no later than July 4, 2026.”

Musk’s involvement in the envisioned group was previously promised by Trump and touted by the Tesla CEO, who spent an estimated $200 million backing the Republican nominee’s 2024 campaign, as a reason to put the former president back in the White House. Musk, who also runs defense contractor SpaceX, has reportedly been stationed at Trump’s Mar-a-Lago resort in Florida since Election Night.

Ramaswamy, who challenged Trump in the Republican primary, is co-founder of investment firm Strive Asset Management. He has opposed the widespread adoption of environmental, social and governance, or ESG, principles by companies.

Trump announced a number of other appointments Tuesday, including naming Fox News host Pete Hegseth as his pick for defense secretary and John Ratcliffe as CIA director.

WATCH: Vivek Ramaswamy on Trump’s election victory

Vivek Ramaswamy on Trump's election victory: Let's turn the page to chase the future

Technology

Spotify shares pop on better-than-expected profit forecast

Published

8 hours ago

November 12, 2024

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Spotify shares pop on better-than-expected profit forecast

The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange on Dec. 4, 2023.

Brendan Mcdermid | Reuters

Spotify shares rose in extended trading Tuesday after the Swedish music streaming company issued a profit forecast for the fourth quarter that topped estimates.

Here’s how the company did, compared with what analysts expected:

Earnings per share: 1.45 euros vs. 1.72 euros expected by LSEG
Revenue: 3.99 billion euros vs. 4.02 billion euros expected by LSEG
Monthly active users (MAUs): 640 million vs. 639 million expected by StreetAccount

While the company’s earnings and revenue for the third quarter trailed estimates, investors focused instead on guidance for the current period.

Spotify said operating income in the fourth quarter will come in at 481 million euros, exceeding the average analyst estimate of 432.7 million euros, according to StreetAccount. MAUs will increase to 665 million, while analysts were expecting 659.3 million, based on a StreetAccount estimate.

Still, revenue guidance trailed estimates. The company said sales will reach 4.1 billion euros, below the average analyst estimate of 4.26 billion euros, according to LSEG.

Subscribers to Spotify Premium, the company’s ad-free membership service that allows users to select songs on an unlimited basis, increased 12% year over year to 252 million, slightly ahead of estimates.

Spotify shares rose about 8% after the report to $452.35 after rising 2.2% in regular trading. The stock has more than doubled in value this year.

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