
Chinese state-sponsored contract hacker arrested in Italy at US request, DOJ says
Xu Zewei, 33, was arrested on Jul 3, the Justice Department said, adding a nine-count indictment was unsealed on Tuesday in the Southern District of Texas alleging the involvement of that individual and a co-defendant in computer intrusions between February 2020 and June 2021.
Xu was arrested in Milan, Italy, and will face extradition proceedings, the DOJ said in a statement.
It alleged China's ministry of state security had directed theft of COVID-19 research and the exploitation of Microsoft email software vulnerabilities.
The Chinese government has previously denied allegations of being involved. Liu Pengyu, a spokesperson for China's embassy in Washington, said on Tuesday China opposes all forms of cyber crimes, adding that "China has neither the need nor the intention to acquire vaccines through so-called theft".
Mao Ning, a spokesperson for China's foreign ministry, said on Thursday that China opposed "the use of so-called cyber issues to maliciously smear China" when asked about the case in a regular press briefing.
China opposes the extradition of Chinese citizens through a third country, Mao said, accusing the US of "abusing long-arm jurisdiction".
Xu's lawyer said on Tuesday that he is a victim of mistaken identity, that his surname is quite common in China and that his mobile phone had been stolen in 2020.
The 33-year-old IT manager at a Shanghai company appeared on Tuesday before an appeals court in Milan, which will decide whether to send him to the United States. The man was arrested last week after he arrived at Milan's Malpensa airport for a holiday in Italy with his wife.
US authorities allege that he was part of a team of hackers who in 2020 hacked and otherwise targeted US-based universities, immunologist, and virologists conducting research into COVID-19 vaccines, treatment, and testing. The US Justice Department says a research university located in the Southern District of Texas was also targeted.
The DOJ also says that in 2021, he was part of a cyber-espionage group known as Hafnium, which has alleged ties to the Chinese government and which "exploited zero-day vulnerabilities in US systems to steal additional research".
Hafnium targeted over 60,000 US entities, according to the DOJ.
The charges listed on the arrest warrant were wire fraud and aggravated identity theft, conspiracy to commit wire fraud and unauthorised access to protected computers.

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5 hours ago
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Trump tours Texas flood sites and defends officials amid mounting questions about response
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CNA
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China foreign minister Wang Yi slams South China Sea ruling as ‘farce' at regional meeting
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CNA
9 hours ago
- CNA
US State Department starts firing 1,300 employees as part of Trump shake-up
WASHINGTON: The State Department began firing more than 1,350 US-based employees on Friday (Jul 11) as the administration of President Donald Trump presses ahead with an unprecedented overhaul of its diplomatic corps, a move critics say will undermine US ability to defend and promote US interests abroad. The layoffs, which affect 1,107 civil service and 246 foreign service officers based in the United States, come at a time when Washington is grappling with multiple crises on the world stage: Russia's war in Ukraine, the almost two-year-long Gaza conflict, and the Middle East on edge due to high tension between Israel and Iran. "The Department is streamlining domestic operations to focus on diplomatic priorities," an internal State Department notice that was sent to the workforce said. "Headcount reductions have been carefully tailored to affect non-core functions, duplicative or redundant offices, and offices where considerable efficiencies may be found," it added. The total reduction in the workforce will be nearly 3,000, including the voluntary departures, according to the notice and a senior State Department official, out of the 18,000 employees based in the United States. The move is the first step of a restructuring that Trump has sought to ensure foreign policy is aligned with his "America First" agenda. Former diplomats and critics say the firing of foreign service officers risks America's ability to counter the growing assertiveness from adversaries such as China and Russia. "President Trump and Secretary of State Rubio are once again making America less safe and less secure," Democratic Senator Tim Kaine from Virginia said in a statement. "This is one of the most ridiculous decisions that could possibly be made at a time when China is increasing its diplomatic footprint around the world and establishing an overseas network of military and transportation bases, Russia is continuing its years-long brutal assault of a sovereign country, and the Middle East is careening from crisis to crisis," Kaine said. Dozens of State Department employees crowded the lobby of the agency's headquarters in Washington, holding an impromptu "clap-out" for their colleagues who have been fired. Dozens of people were crying, as they carried their belongings in boxes and hugged and bid farewell to friends and fellow workers. Outside, dozens of others were lined up continuing to clap and cheer for them, with some holding banners that read, 'Thank you America's diplomats.' Democratic Senator Chris Van Hollen attended the demonstration. Several offices were set up inside the building for employees who are being laid off to turn in their badges, laptops, telephones and other property owned by the agency. The offices were marked by posters that read "Transition Day Out Processing". One counter was labelled an "Outprocessing service centre" with small bottles of water placed next to a box of tissue. Inside one office, cardboard boxes were visible. A five-page "separation checklist" that was sent to workers who were fired on Friday and seen by Reuters tells the employees that they would lose access to the building and their emails at 5pm local time on Friday. Many members of a State Department office overseeing the US resettlement of Afghans who worked for the US government during the 20-year war have also been terminated as part of the overhaul. "WRONG SIGNAL" Trump in February ordered Secretary of State Marco Rubio to revamp the foreign service to ensure that the Republican president's foreign policy is "faithfully" implemented. He has also repeatedly pledged to "clean out the deep state" by firing bureaucrats whom he deems disloyal. The shake-up is part of an unprecedented push by Trump to shrink the federal bureaucracy and cut what he says is wasteful spending of taxpayer money. His administration dismantled the US Agency for International Aid, Washington's premier aid arm that distributed billions of dollars of assistance worldwide, and folded it under the State Department. Rubio announced the plans for the State Department shake-up in April, saying the Department in its current form was "bloated, bureaucratic" and was not able to perform its mission "in this new era of great power competition". He envisioned a structure that he said would give back the power to regional bureaus and embassies and get rid of programs and offices that do not align with America's core interests. That vision would see the elimination of the role of top official for civilian security, democracy, and human rights and the closure of some offices that monitored war crimes and conflicts around the world. The reorganization had been expected to be largely concluded by Jul 1 but did not proceed as planned amid ongoing litigation, as the State Department waited for the US Supreme Court to weigh in on the Trump administration's bid to halt a judicial order blocking mass job cuts. On Tuesday, the court cleared the way for the Trump administration to pursue the job cuts and the sweeping downsizing of numerous agencies. Since then, The White House Counsel's Office and the Office of Personnel Management have been coordinating with federal agencies to ensure their plans comply with the law.