The malware infected a wide range of consumer devices, including routers, cameras, digital video recorders and network-attached storage devices, according to a US statement, with the overall network termed a "botnet."
"The botnet devices were infected by People's Republic of China (PRC) state-sponsored hackers working for Integrity Technology Group, a company based in Beijing, and known to the private sector as 'Flax Typhoon,'" the statement said.
In a court-authorized operation, US authorities "took control of the hackers' computer infrastructure" and disabled the network, it added.
Several countries, notably the United States, have voiced alarm in recent years at what they say is coordinated Chinese-government-backed hacking activity targeting their governments, militaries and businesses. Beijing rejects the allegations.
In February, US authorities said they had dismantled a network of hackers known as "Volt Typhoon," which was targeting key public sector infrastructure like water treatment plants and transportation systems at the behest of China.
"Flax Typhoon" had been active since mid-2021 and also targeted dozens of Taiwanese government agencies with the likely aim of spying on them, Microsoft said in August 2023.
The US Federal Bureau of Investigation's probe corroborated Microsoft's findings, adding that the botnet had "successfully attacked multiple US and foreign corporations, universities, government agencies, telecommunications providers, and media organizations," the statement said.
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