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FBI Says China's Hack-for-Hire System is 'Out of Control'

FBI officials say the network gave Chinese hackers plausible deniability while targeting thousands of computers and 12,700 U.S. organizations in one campaign.

  • On Thursday, FBI Assistant Director Brett Leatherman warned that Chinese hackers face arrest if they travel outside their home country, following the recent extradition of Chinese national Xu Zewei from Italy.
  • China's "hacker-for-hire ecosystem has gotten out of control," Leatherman said, explaining how private firms operate at the behest of intelligence agencies to provide Beijing with "a form of plausible deniability."
  • Hackers exploited vulnerabilities in Microsoft Exchange, a campaign tracked as Hafnium, which compromised 12,700 organizations in the United States and targeted COVID-19 researchers, according to the Department of Justice.
  • Xu allegedly worked as a general manager at Shanghai Powerock Network, directing hacking activities for the Shanghai State Security Bureau and now facing multiple counts including wire fraud and aggravated identity theft.
  • Chinese Foreign Ministry Spokesperson Lin Jian accused Washington of "fabricating charges through political manipulation," while fellow hacker Zhang Yu remains at large, according to the Department of Justice.
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TechCrunch broke the news in United States on Monday, April 27, 2026.
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