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Hawley probes OpenAI over Hugging Face breach

OpenAI is facing mounting pressure from Capitol Hill due to the attack its agents carried out on Hugging Face, while lawmakers voice widening concerns about AI’s potentially existential risks.

Sen. Josh Hawley, R-Mo., criticized OpenAI leadership for what he described as “reckless” activities leading up to the Hugging Face breach, and accused the company of withholding important details from a technical report it released in late August.

The Chair of the Subcommittee on Disaster Management kicked off an investigation into the incident “in light of new, disturbing evidence,” he wrote in a letter Tuesday to OpenAI CEO Sam Altman.

“My investigation will probe this AI hacking incident, along with growing allegations of the existential risk of new AI products,” Hawley added. 

“The Hugging Face incident was an important moment for AI safety and a warning about the risks that can come with increasingly capable AI across the industry,” a spokesperson for OpenAI told CyberScoop. “We conducted an extensive investigation and published a detailed report on what happened, what we learned, and how we’re strengthening our security and alignment practices.”

The lawmaker is seeking detailed internal communications, exhaustive technical information and reasoning behind OpenAI leaders’ decisionmaking and activities surrounding the hack by Oct. 1.

“The American people deserve to know the details of what went on in the Hugging Face incident and other incidents of AI models going rogue,” Hawley wrote. 

He accused the company for not providing more details and resources to the third-party auditors who published an independent report on the breach, adding “they had limited visibility into the circumstances leading to the attack and its aftermath.”

Hawley sent his letter to Altman amid a seeming internal chasm within the ranks of AI’s top proprietors over the ways they are allowing the technology to advance mostly unrestrained. He referenced some of these latest warnings in his letter.

Jacob Coxon publicly quit his job as a researcher at Anthropic earlier this week, claiming the company and his previous employer OpenAI are acting irresponsibly and “gambling with our lives.” His social media missive went viral for insisting “the people building AI earnestly believe that it could kill us all by the end of the decade.”

Evan Hubinger, alignment science lead at Anthropic, responded to Coxon’s post in the affirmative, adding that guardrails for superintelligence are lacking and he believes there’s a greater than 10% chance AI could kill all humans within the next decade.

Using those posts as fuel for his inquiry, Hawley questioned what might happen if AI agents hack into critical infrastructure, banks or utilities. Ultimately, he asked Altman: “Who is held liable when AI goes rogue?”

You can read Hawley’s full letter and requested details below.

The post Hawley probes OpenAI over Hugging Face breach appeared first on CyberScoop.

Officials disrupt Chinese espionage operation that hit multiple federal agencies

Federal authorities Wednesday revealed a multi-layered Chinese state-sponsored espionage operation that’s targeted and compromised U.S. critical infrastructure, including multiple federal agencies, since 2018. 

Officials seized domains and unsealed an affidavit detailing how a Chinese government-funded front company assembled a botnet and complementary systems that allowed attackers to intrude highly sensitive networks.

The FBI and Justice Department said the state-sponsored group, known as “QTFY,” has targeted and intruded the networks of the Departments of Energy, Justice, Health and Human Services, the Federal Reserve, NASA, National Institutes of Health, and, unsuccessfully in March, the Senate. 

Financial institutions, defense contractors, utility companies, telecom providers and hospitals have also been targeted by the threat group, which includes former members of China’s military, according to court records. 

Officials said QTFY also attempted, but was unsuccessful, in gaining access to a U.S. election system in June. 

The long-running operation, which officials obstructed by seizing malicious infrastructure, provided an expansive set of services. QTFY’s full hacking suite allowed attackers to scan and exploit vulnerabilities, infect IoT devices for a botnet, and conceal or reroute traffic.

QTFY’s operation was comprehensive with features that provided continuous reconnaissance capabilities and flexibilities designed for specific targets or objectives, said Ryan English, information security engineer at Lumen Technologies’ Black Lotus Labs, which aided the disruption efforts. 

Officials said they seized three domains, which cut off access to QScan and QTRouter, the group’s primary platforms. 

“Today’s announcement demonstrates the Justice Department’s steadfast commitment to going on the offensive against cyber threats to national security,” John A. Eisenberg, assistant attorney general for national security, said in a statement. “These court-authorized seizures deny People’s Republic of China-linked hackers access to tools they use to mount online attacks against our nation’s critical infrastructure.”

The FBI, National Security Agency and Cyber National Mission Force released a joint cybersecurity advisory with QTFY’s known indicators of compromise Wednesday. Officials also detailed the China-linked hacking group’s affiliations and collaborations with other state-sponsored groups.

QTFY targeted sensitive networks in the U.S. and globally by exploiting vulnerabilities in multiple vendors’ products, including Pulse Secure, Fortinet, Citrix, Microsoft, F5, Kentico CMS, Atlassian Confluence, Ivanti, Check Point, CrushFTP and BeyondTrust, officials said.

QScan, the reconnaissance and vulnerability scanning tool, included more than 200 proof-of-concept exploits, according to court records. 

“It was designed for large-scale deployment. On a single day in 2024 for example, QScan processed over two million scanning and exploit tasks,” a special agent for the FBI said in the affidavit.

The Chinese hacking collective exploited multiple Ivanti zero-day vulnerabilities in September 2024 to intrude the networks of three DOE national laboratories, NIH, an HHS agency and a U.S.-based security device manufacturer. Officials said the seized domains were all used in those attacks. 

The FBI has been investigating QTFY, which operated out of a private China-based front company, Nanjing Xinjiuwei Network Technology Company, since at least 2019. The group has been consistently active for more than eight years. 

“Discovery of these private companies building networks for China is becoming more frequent,” English said. “We’re starting to see that when they’re getting exposed, some of these have been in business a few years before they’re found.”

The takedown follows a series of technical operations aimed at dismantling China state-sponsored attackers’ infrastructure, including an operation in early 2025 that allowed officials to remove PlugX malware from thousands of U.S.-based computers.

“State-sponsored malicious hackers preying on America’s critical infrastructure will be stopped and prosecuted,” Attorney General Todd Blanche said in a statement. “We are here to ensure security for the American people and will use every tool we have to keep that promise.”

The post Officials disrupt Chinese espionage operation that hit multiple federal agencies appeared first on CyberScoop.

Bipartisan Senate bill aims to prepare energy sector for Q-Day

A new bipartisan Senate bill would require federal regulators to prepare the U.S. electric grid for cybersecurity threats from quantum computers and create a technical sandbox to study how the technology could impact  both information and operational technology systems.

The Quantum Grid Utility Assurance and Resilient Defense (Quantum-GUARD) Act, introduced by Sens. Mike Rounds, R-S.D., and Chris Coons, D-Del., would direct the Federal Regulatory Energy Commission when reviewing proposed reliability regulatory standards for electricity owners and operators under the Federal Power Act.

FERC updates its reliability standards to account for emerging cybersecurity concerns, and the legislation would expand those reviews to include the future threat of hacks from quantum computers.

The legislation also directs FERC to explore potential uses of post-quantum cryptography in IT and OT systems and “take such action the Commission determines to be appropriate based on that consideration.”

In a statement, Coons said quantum computing brings “new economic opportunities” along with “tremendous cybersecurity risks.”

“As the technology races forward and our adversaries continue to seek vulnerabilities in our critical systems, we need to pass the Quantum-GUARD Act to ensure our government is using every available tool to meet this threat,” said Coons.

The federal government has been an early adopter of post-quantum cryptography for its digital systems. The National Institute for Standards and Technology has worked with cryptographers to develop new “post-quantum” encryption algorithms that will be used by most governments and the private sector.

Under the Biden administration, most federal agencies were required to migrate their systems and data to “PQC” encryption by 2035. In June, an executive order from the Trump administration pushed that timeline up to 2030. 

Ali Shaikh, CEO of Graphiant, a networking infrastructure startup, told CyberScoop that the bill would represent a good start in terms of pushing greater adoption of quantum-resistant encryption, “the real work is upgrading infrastructure, not applications, ahead of the deadlines.”

Evgeny Gervis, CEO of SafeLogic, compared the energy sector’s challenges to previous efforts by FERC and industry to gain adoption at scale for other technological upgrades, like smart grid equipment. Among those challenges is prioritizing security upgrades in a sector where reliability is paramount.

“The highest priority for electric utilities will be preservation of integrity and availability, both services that are widely supported by legacy public key cryptographic controls that are quantum vulnerable,” said Gervis. “It is essential that quantum computers do not undermine the integrity and authenticity of SCADA communications or the software update process.“

The post Bipartisan Senate bill aims to prepare energy sector for Q-Day appeared first on CyberScoop.

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