They Hacked the Fed, the Senate, and the DOJ | The Debriefing17

🤔They Hacked the Fed, the Senate, and the Department of Justice

On August 26, the Justice Department announced it had seized and shut down two hacking platforms operated by a Chinese state-sponsored group that breached some of the most sensitive institutions in the United States government.

The victims: NASA. The Federal Reserve. The Department of Energy. The Department of Justice. The Department of Health and Human Services. The National Institutes of Health. The United States Senate.

Not private companies. Not defense contractors. The actual institutions that run the country.

The group is called QTFY. It’s employed by a company called Nanjing Xinjiuwei Network Technology, based in China. It built two platforms QScan and QTRouter that worked together. QScan automatically infected thousands of internet-connected devices around the world. QTRouter chained those infected devices into a network that disguised where the attacks were actually coming from. The hacking looked like it was coming from local devices. It was coming from China.

The customers: the PRC’s Ministry of State Security and the People’s Liberation Army. Both of China’s intelligence services, buying hacking-as-a-service from a private Chinese company. State-sponsored hacking, outsourced to a contractor.

This had been running since at least 2018. Eight years of operations before the FBI shut it down.

The court-authorized seizures made both platforms inoperable. The domains were hard-coded into the malware seize the domains, kill the tools.

Attorney General Blanche called it “the latest in a series of technical operations to dismantle indiscriminate hacking activities sponsored by the People’s Republic of China.”

He said the latest. Because this is the fourth year in a row.

In 2023, the FBI disrupted a botnet used by the Chinese group Volt Typhoon to hide its exploitation of U.S. critical infrastructure. In 2024, the FBI disabled a botnet of hundreds of thousands of infected devices run by the Chinese group Flax Typhoon. In 2025, the FBI removed surveillance malware from over 4,000 U.S. computers after they’d been infected by the Chinese group Mustang Panda.

2023. 2024. 2025. 2026. Four consecutive years of court-authorized takedowns against Chinese cyber infrastructure targeting the United States. A new group. A new platform. A new disruption. Every single year.

Now hold two things in your mind at the same time.

The People’s Liberation Army, one of the two customers buying these hacking services, is simultaneously being gutted from the inside. Over 100 senior PLA officers have been purged since 2022. Sixty percent of the military’s representatives on China’s anti-corruption commission didn’t show up to the last meeting. The head of the military’s internal discipline body was removed. Three officers who attended a meeting in January vanished before August.

The same military that’s buying hacking tools to breach the U.S. Senate is losing its own officers by the dozen. The PLA is running offensive cyber operations against American government infrastructure while its own leadership is being purged at a rate that has no precedent in modern Chinese history.

And the Federal Reserve one of the confirmed victims of this eight-year hacking campaign is the same institution that has been systematically excluded from the new American financial architecture. The Fed wasn’t invited to rewrite bank lending rules. The Fed is banned from issuing a digital dollar. The Fed doesn’t appear in any stablecoin licensing framework. The Fed Chair volunteered to give balance sheet authority back to Treasury before he was even confirmed.

The Fed is being routed around in the new system. And it was being hacked in the old one.

The Department of Justice another confirmed victim is the same department that just stood up a 500-prosecutor National Fraud Enforcement Division with sanctions evasion in its mandate. DOJ was breached by the same Chinese state apparatus it’s now building the capacity to prosecute.

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FBI Director Patel said the bureau is “surging efforts to shape adversary behavior and defend the homeland in cyberspace.”

Four years. Four takedowns. Four different Chinese groups. And the target list includes the institutions that make American laws, set American interest rates, and enforce American justice.

They weren’t hacking random companies. They were hacking the architecture.

Timelines. Patterns. The general’s words, not mine. All I did was read the receipts.

I am the guy on the couch, and you have been debriefed.

6:49 AM · Aug 27, 2026

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~The Debriefing17

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