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What is the U.S. doing right now? The Federal Reserve is undergoing a complete overhaul of its IT infrastructure following a major cybersecurity breach attributed to Chinese hackers. All computers within the Federal Reserve have been removed due to the presence of undetected spyware or bugware believed to be developed by Chinese state-sponsored groups.
In a drastic measure to safeguard national security, the U.S. government has ordered the destruction of all hard drives from compromised systems to ensure no residual malware remains. Additionally, sensitive materials, such as banknote designs, are being withdrawn from circulation to prevent the possibility of counterfeit currency production by Chinese actors.
The United States and its banking institutions have also announced a total freeze on special funding and investments for China and Hong Kong. This unprecedented decision comes amidst allegations that China attempted to assert control over the Federal Reserve through cyber intrusions, financial capture, and even efforts to erase sanctions against the Hong Kong government.
The FBI, in collaboration with top cybersecurity agencies and tech companies like Microsoft, is actively investigating the breach. Their efforts include probing currency manipulation schemes, breaches of classified materials, and tracing the origins of the spyware.
Officials have yet to disclose full details of the situation, but analysts speculate that the freeze on investments is tied to escalating geopolitical tensions, fears of economic destabilization, and Cold War-era rivalries resurfacing.
The U.S. government is racing to rebuild and secure its critical financial systems, signaling a strong stance against cyber aggression. As both nations brace for further fallout, this breach may mark a significant turning point in U.S.-China relations.
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