Chinese Communist Party Hacker Xu Zewei Was Extradited From Italy to the United States, Facing Nine Charges

Image: On July 29, 2024, the U.S. Department of Justice (DOJ) building in Washington, D.C. (Madalina Vasiliu/Dajiyuan)

[People News] The U.S. Department of Justice officially announced on Monday (April 27) that Xu Zewei, a hacker working for the Chinese Communist government, has been extradited from Italy to the United States, where he faces a total of nine charges in an indictment. The 34-year-old Chinese national is accused of participating in large-scale hacking operations directed by Chinese national security officials, having hacked into computers in the U.S. and around the world from February 2020 to June 2021, stealing information, including COVID-19 research data.

Voice of America reported that Xu Zewei was arrested in Milan last July at the request of the U.S. by Italian authorities. Bloomberg was the first to report on Sunday that Italy had decided to extradite him to the U.S. The U.S. Department of Justice confirmed that Xu was extradited to the U.S. last Saturday and made his first court appearance at the Southern District Federal Court in Houston, where he is currently being held pending a detention hearing scheduled for Thursday.

In a press release on Monday, the U.S. Department of Justice stated that the Chinese Ministry of State Security is accused of ordering the theft of COVID-19 research and exploiting vulnerabilities in Microsoft Exchange to conduct indiscriminate hacking operations against thousands of computers in the U.S. and worldwide. Xu Zewei was involved in these hacking activities.

Federal prosecutors have characterised Xu Zewei as a 'state-sponsored hacker contractor.' Court documents reveal that officials from the Shanghai Municipal Security Bureau of the Ministry of State Security of the People's Republic of China directed Xu Zewei to participate in these hacking activities. At the time of the incident, Xu was allegedly employed by Shanghai Powerock Network Co. Ltd, one of several 'facilitator' companies in China that conduct hacking attacks on behalf of the Chinese government.

The unsealed indictment also names co-defendants, including 44-year-old Chinese citizen Zhang Yu and two unnamed officials from the Shanghai Municipal Security Bureau.

Xu Zewei faces charges of conspiracy to commit telecommunications fraud, two counts of telecommunications fraud, identity theft, unauthorised access to protected computers causing damage and obtaining information, and willfully damaging protected computers, totalling nine charges. Each charge carries a maximum penalty ranging from 2 to 20 years in prison. If convicted, he could also face consecutive sentences.

Chinese hacker Xu Zewei, extradited from Italy to the United States, is involved in nine charges and remains at large.

According to court documents, in early 2020, Xu Zewei and his accomplices executed hacking attacks and other targeted actions against universities in the United States, as well as immunologists and virologists conducting research on COVID-19 vaccines, treatments, and testing. Xu and his associates reportedly reported to and received directives from officials of the Shanghai State Security. The targets included the network of a research university in Texas and the email accounts of immunologists and virologists at that institution involved in coronavirus research.

The indictment further claims that since late 2020, Xu Zewei and his accomplices have exploited certain vulnerabilities in Microsoft Exchange email servers, positioning themselves as the forefront of a large-scale attack campaign targeting thousands of computers globally, with the hacker group known as 'HAFNIUM.' Among the victims of Xu Zewei's hacking spree are another university in South Texas and a law firm with offices in Washington and other locations worldwide.

Federal prosecutors assert that the Chinese Communist Party (CCP) leverages its extensive network of private enterprises and contractors within China to conduct hacking attacks and steal information while obscuring the CCP government's involvement. These private companies and contractor networks operate under the pretence of security shelters, motivated by profit, and cast a wide net to identify vulnerable computers, executing attacks to acquire information that can be sold directly or indirectly to the CCP government. This hacking operation is fundamentally indiscriminate, resulting in numerous victims in the United States and across the globe, jeopardising more systems, and leading to the theft of more information, much of which is of little interest to the CCP government and is later sold to third parties.

John A. Eisenberg, the Assistant Attorney General for National Security at the Department of Justice, remarked in a statement: 'The United States is dedicated to tracking down those hackers who steal information from American companies and universities and pose a threat to our cybersecurity.'

Brett Leatherman, the Assistant Director of the FBI's Cyber Division, remarked in a statement: 'The extradition of Xu Zewei demonstrates that the FBI's jurisdiction extends well beyond U.S. borders. Xu Zewei will now be held accountable for his alleged involvement in the 'HAFNIUM' organisation, which was orchestrated by the Ministry of State Security of the People's Republic of China and launched a significant cyber intrusion campaign that affected over 12,700 American entities. He is among the many contractors employed by the Chinese government to obscure its covert role in cyber operations; others involved in similar activities will also face comparable risks.'

The FBI expressed its appreciation to law enforcement partners, including the Italian Postal Police, for apprehending Xu Zewei in Milan and facilitating his extradition to the United States. △