Sanctions on China-Based Hacker and Data Broker

The Department of Justice today unsealed indictments charging Zhou Shuai and Yin Kecheng, eight employees of i-Soon, a Chinese technology company, and two officers of China’s Ministry of Public Security (MPS) with a variety of hacking-related offenses.  Further, the Diplomatic Security Service’s Rewards for Justice Program (RFJ) is offering up to $10 million for information on i-Soon, its employees, and the MPS officers engaged in malicious cyber activities highlighted in the Department of Justice’s indictments.

Additionally, the United States imposed sanctions on the Shanghai-based malicious cyber actor and data broker, Zhou Shuai, and his company, Shanghai Heiying Information Technology Company.  Zhou Shuai illegally acquired, brokered, and sold data from highly sensitive U.S. critical infrastructure networks, including in the defense industrial base, communications, health, and government sectors.  The Department of State also announced reward offers under the Transnational Organized Crime Rewards Program (TOCRP) of up to $2 million each for information leading to the arrests and/or convictions of Zhou Shuai and Yin Kecheng.

As evidenced by today’s, and previous announcements, China offers safe harbor for private sector companies that conduct malicious cyber activity against the United States and its partners.  The Chinese Communist Party also appears to contract them with varying degrees of control and effectiveness.  China-backed malicious cyber actors continue to be one of the greatest and most persistent threats to U.S. national security. 

Today’s multi-agency effort reflects our whole-of-government approach to protecting and defending against China-based cyber threats to Americans, their sensitive personal data, and our critical systems.  President Trump is committed to protecting the American people and U.S. critical infrastructure from these pervasive threats, and we will resolutely use all the tools at our disposal to do so.