August 28, 2026 — The U.S. government has officially announced that a Chinese state-sponsored hacking operation compromised networks across multiple high-profile federal agencies, including the Federal Reserve, the Department of Justice (DOJ), and NASA.
The U.S. Department of Justice and the FBI announced a major victory against state-sponsored cyber espionage, revealing they have dismantled a sprawling Chinese . The multi-year campaign successfully compromised networks inside the Federal Reserve, NASA, the Department of Justice, and the U.S. Senate.
According to unsealed federal court documents in California, the cyber intrusions were reportedly orchestrated by a Chinese state-sponsored threat group known as "QTFY". Investigators linked the hackers directly to the Nanjing Xinjiuwei Network Technology Company, a China-based entity that operates on behalf of Beijing's military and intelligence agencies.
Federal law enforcement officials confirmed they seized the internet domains of two sophisticated hacking platforms used by the group:
• QScan: Used to scan the global web and automatically infect internet-of-things (IoT) devices, such as smart home routers.
• QTRouter: Utilized as an obfuscation network to route malicious traffic, hiding the true geographical origin of the cyberattacks.
Utilizing this hacking infrastructure made the Chinese actors masked their operations to look like standard local network traffic or attacks originating from other countries.
The FBI's affidavit indicates that the campaign has been active since at least 2018. While the DOJ has not yet publicly detailed the exact volume of data stolen or the specific damage inflicted upon the Federal Reserve, the broader operation actively targeted or breached a wide array of vital U.S. infrastructure, including:
• Federal Oversight: The Federal Reserve, DOJ, and U.S. Senate.
• Scientific & Health Institutions: NASA, the Department of Energy (including three national laboratories), the National Institutes of Health (NIH), and the Department of Health and Human Services (HHS).
• Private Sector: Hospitals, telecommunications providers, and defense contractors.
"Today we announced the disruption of a global botnet and hacking platform used by Chinese state-sponsored hackers to target U.S. critical infrastructure," said FBI Director Kash Patel. Attorney General Todd Blanche emphasized that federal law enforcement will continue to use every tool available to dismantle malicious software deployed by the People's Republic of China (PRC).
Beijing's Response
The Chinese Embassy in Washington countered the allegations, stating that Beijing "firmly opposes and combats all forms of cyberattacks in accordance with the law". Chinese officials routinely dismiss U.S. cybersecurity findings as baseless political accusations.
The investigation remains active as U.S. intelligence agencies and forensic specialists continue to assess the full breadth of unclassified networks accessed during the years-long operation.
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