World
US Treasury says Chinese hackers stole documents in 'major incident'
By Raphael Satter and AJ Vicens
WASHINGTON (Reuters) -Chinese state-sponsored hackers breached the U.S. Treasury Department’s computer security guardrails this month and stole documents in what Treasury called a “major incident,” according to a letter to lawmakers that Treasury officials provided to Reuters on Monday.
The hackers compromised third-party cybersecurity service provider BeyondTrust and were able to access unclassified documents, the letter said.
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According to the letter, hackers “gained access to a key used by the vendor to secure a cloud-based service used to remotely provide technical support for Treasury Departmental Offices (DO) end users. With access to the stolen key, the threat actor was able to override the service’s security, remotely access certain Treasury DO user workstations, and access certain unclassified documents maintained by those users.”
“Based on available indicators, the incident has been attributed to a China state-sponsored Advanced Persistent Threat (APT) actor,” the letter said.
The Treasury Department said it was alerted to the breach by BeyondTrust on Dec. 8 and that it was working with the U.S. Cybersecurity and Infrastructure Security Agency (CISA) and the FBI to assess the hack’s impact.
Treasury officials didn’t immediately respond to an email seeking further details about the hack. The FBI did not immediately respond to Reuters’ requests for comment, while CISA referred questions back to the Treasury Department.
“China has always opposed all forms of hacker attacks,” Mao Ning, a spokesperson for China’s foreign ministry, told a regular news conference on Tuesday.
A spokesperson for the Chinese Embassy in Washington rejected any responsibility for the hack, saying that Beijing “firmly opposes the U.S.’s smear attacks against China without any factual basis.”
A spokesperson for BeyondTrust, based in Johns Creek, Georgia, told Reuters in an email that the company “previously identified and took measures to address a security incident in early December 2024” involving its remote support product. BeyondTrust “notified the limited number of customers who were involved,” and law enforcement was notified, the spokesperson said. “BeyondTrust has been supporting the investigative efforts.”
The spokesperson referred to a statement posted on the company’s website on Dec. 8 sharing some details from the investigation, including that a digital key had been compromised in the incident and that an investigation was under way. That statement was last updated on Dec. 18.
Tom Hegel, a threat researcher at cybersecurity company SentinelOne, said the reported security incident “fits a well-documented pattern of operations by PRC-linked groups, with a particular focus on abusing trusted third-party services – a method that has become increasingly prominent in recent years,” he said, using an acronym for the People’s Republic of China.”
(Reporting by Raphael Satter in Washington, AJ Vicens in Detroit and Akash Sriram in Bengaluru; Additional reporting by Liz Lee in Beijing; Editing by Shinjini Ganguli, Tasim Zahid, Alistair Bell, Rod Nickel, Leslie Adler and Sonali Paul)
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U.K. Defense Secretary John Healey resigned Thursday after clashing with Prime Minister Keir Starmer’s government over military spending, dealing the British leader a setback weeks before a critical NATO summit to include President Donald Trump.
Healey’s departure stemmed from a dispute over the delayed Defense Investment Plan (DIP) — the government’s long-promised roadmap for military investment and readiness — and as NATO allies face renewed pressure from Trump to boost defense spending.
“John Healey’s resignation is a seismic moment for the government and the Ministry of Defense,” Royal United Services Institute (RUSI) Senior Associate Fellow Ed Arnold told Fox News Digital.
“For the government, it creates a sequence of political headaches in terms of a replacement, and trying to get the Defense Investment Plan published.”
BRITISH PM KEIR STARMER MOVES UK MILITARY INTO ‘WAR-FIGHTING READINESS’
Britain’s Defence Secretary John Healey speaks with British and Norwegian naval personnel at the unveiling of the Atlantic Bastion programme in Portsmouth, Britain, on Dec. 4, 2025. (Peter Nicholls/Pool via Reuters)
Healey had been in intense, late-stage negotiations with Starmer and Chancellor of the Exchequer Rachel Reeves over the scale and timelines of the DIP.
Starmer reportedly refused to set out a timeline to reach 3.5% of gross domestic product (GDP) on defense by 2035 — a promise he made to Trump at last year’s NATO summit — and would not commit to a firm date for reaching 3%.
Instead, Starmer offered Healey a deal to spend 2.68% of GDP on defense by 2030, up only marginally from 2.6% next year, Reuters reported.
“You have been unable, and the Treasury has been unwilling, to commit the resources that the nation needs to defend the country,” Healey wrote to Starmer in his resignation letter, warning that the financial constraints would “make the country less safe,” the outlet reported.
NATO CHIEF URGES MEMBERS TO ‘TURBOCHARGE’ DEFENSE PRODUCTION AS HE PAINTS PICTURE OF A WORLD BOUND FOR WAR
NATO Secretary General Mark Rutte, U.S. President Donald Trump and Britain’s Prime Minister Keir Starmer pose with NATO country leaders during the NATO Heads of State and Government summit in The Hague, Netherlands, on June 25, 2025. (Ben Stansall/Pool via Reuters)
“If the delay to the Defense Investment Plan was already undermining the government’s credibility on defense, John Healey’s resignation has blown a hole in its side,” Professor Kevin Rowlands of the RUSI defense and security think tank told Fox News Digital.
“The immediate consequence is not just political embarrassment for No. 10, but a significant loss of planning certainty at a time when the British Armed Forces, the Ministry of Defense, and industry really need clarity on what will be funded, and when,” he added.
The political fallout is expected to reverberate across the Atlantic, where Washington has increased pressure on European allies to fulfill their defense obligations. Trump has frequently criticized NATO alliance members as “free riders.”
On June 3, Secretary of State Marco Rubio also told the House Foreign Affairs Committee that the upcoming Ankara summit would be the “most important meeting” in NATO’s history because there are some things “that need to be cleared up and fixed.”
He added, “The United States is still in the NATO alliance, and we’ll be there.”
TRUMP EFFECT FORCES GERMANY TO REPRIORITIZE DEFENSE AS NATION PLAYS CATCH-UP IN MILITARY SPENDING
British Prime Minister Keir Starmer increased the military presence in Cyprus following an Iranian drone strike early Monday, Feb. 24, 2026. (Kin Cheung / POOL / AFP via Getty Images))
However, U.S. officials have made it clear that patience is wearing thin.
“Ahead of next month’s NATO summit, POTUS has been clear: Allies must fulfil their commitment to spending 5% of GDP on defense,” U.S. Ambassador to NATO Matthew Whitaker posted on X this week.
Furthermore, a U.S. official noted that a U.K. funding package far lower than 18 billion pounds ($23 billion) would send a highly “negative” signal to Trump ahead of the Ankara meeting, according to The Times.
Starmer has pledged to lift spending to 3% in the next Parliament but Healey’s exit has exposed that the current strategy leaves the U.K. lagging behind key allies. By comparison, Germany plans to spend 3.7% of its GDP on defense by 2030.
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“Healey knows the threats we face, he knows the capabilities and shortfalls the armed forces have, and if he believes that the financial settlement is not enough to keep the country safe — to the extent that he cannot honorably stay in post — then we are in trouble,” Rowlands added.
“While the impact will mainly be felt on Whitehall, the international implications are severe with a NATO summit just three weeks away,” Arnold noted.
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After two years of strong performance driven by a shift to a war economy, Russia’s economic situation is weakening, IMF Managing Director Kristalina Georgieva told Euronews.
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And although the IMF raised its forecast for Russia’s 2026 growth in its April outlook from 0.8% to 1.1%, Georgieva told Euronews this did not reflect the full picture of the economic weakening.
“The higher oil prices do give a breather to Russia,” Georgieva said, arguing the hike cannot offset the bigger hit to Russia’s economy.
“They have depleted their buffers dramatically,” Georgieva said. The oil price windfall “appears to be used to rebuild buffers rather than to inject more investment into the economy,” she explained.
“Growth has slowed down significantly. Now we are projecting 1%. Before the war, their potential growth was 1.6%,” Georgieva pointed out.
The IMF managing director also told Euronews that it is important to consider other economic indicators to better understand Russia’s current economic situation.
“Inflation is high. That means that interest rates are high, almost 15%.”
The IMF does not expect to see “material impact on growth in Russia,” Georgieva said. “It is a country whose medium (and) long-term prospects have worsened significantly.”
She listed three grounds on which the prospects have worsened. The first is losing people.
“A country that was in a demographic decline to begin with now lost so many young people for a terrible reason,” Georgieva explained.
The second factor is the sanctions, specifically the way they “bite a lot on the technology front.”
“What we see in the oil and gas sector in Russia, there is a tremendous problem with lack of technological renewal that is restricting the ability of the sector to expand,” she said.
And the third is the fact that “Russia lost standing.”
“That translates into many tangible and non-tangible losses. I mean, just think of the young Russians that could have built relations with Europeans and others and did not because of the war,” Georgieva stated.
“So, on the whole, Russia is coming crippled,” she concluded.
Not even the professionals inside the New York Knicks press conference room could contain themselves as the clock neared 1 a.m. Thursday morning. Some clapped when Knicks head coach Mike Brown hailed reserve guard Jose Alvarado’s performance—8 points, 2 rebounds and 3 assists, all in the fourth quarter—during the largest comeback in NBA Finals history, which put the Knicks one win away from their first title since 1973.
“I know a lot of you guys can’t (clap) because you’re in the media, and you have to stay neutral,” Brown said, before doing something he wasn’t supposed to do. “I’m going to f—king clap for Jose,” he said. “Sorry, mom.”
It was that kind of night. None of this—erasing a 29-point deficit, these Knicks being one game away from hoisting the Larry O’Brien trophy—was supposed to happen.
A few yards from the pressers, some of the world’s biggest celebrities partied in the bowels of Madison Square Garden, denying gentle requests to climb into the private cars waiting to whisk them away.
Other fans, still in disbelief, had gone from second-guessing why they’d spent thousands of dollars to see their team get blown out in the NBA Finals to wondering how they got away with such a bargain to see Knicks’ history. They belted Knicks in five! down the escalators, slowly leaving the building before massing outside, where scores of police officers sought to maintain order. Or maybe to re-establish it, after what transpired inside MSG during the second half of Game 4.
As the press conferences continued, players consistently reminded writers that there was still one more game to win. But if New York completes its Finals quest, Wednesday’s game will go down in the city’s sports lore.
New York is used to playing the role of top dog. Ensconced in midtown, with their multi-thousand-dollar tickets and A-list supporters, playing in “The World’s Most Famous Arena,” the Knicks are worth $9.85 billion, the third-most valuable team in the NBA. Its billionaire owner James Dolan shared a box with President Donald Trump on Monday night.
In the last few decades, the Knicks have more often represented flash than fight. But this team—assembled via free agency, trades and second-round picks, led by a coach on his fourth stop—has bucked that stereotype. Trailing by 27 at half, they were used to being down and doubted. They chipped away at their deficit, holding the Spurs to 30 second-half points as the gap narrowed and narrowed. Fans in the packed arena, famous or not, remained engaged throughout. Their thunderous yells surely contributed to Spurs star Victor Wembanyama clanking two late free throws with the Knicks down one.
In the waning moments, Jalen Brunson missed a three-pointer to take the lead, but OG Anunoby glided to the hoop in time to get just enough of his hand on the ball to direct it basket-ward.
Brown called Anunoby’s game-winning tip-in with 1.2 seconds left “the most iconic shot in the history of New York basketball.” Images of that two-finger tap feel destined to adorn childhood bedrooms, subway cars and billboards for decades. One is already on a trading card, with a nickname to boot.
“Right hand of God,” Karl-Anthony Towns dubbed the play. A piece of the net will be inserted into one of Topps’ cards. The ball and OG’s jersey will likely be museum pieces, if not auction-house items, one day. Mike Breen’s triple “It’s good!” call on ESPN is certain to play over and over and over again.
OMG!, Thursday morning’s New York Post blared. Meanwhile more than 40 commemorative physical tickets handed out to attendees on Wednesday were bought on eBay by 10 a.m. Thursday. The cheapest ticket for a potential Game 6 on the secondary market now? It’s more than $12,000.
History sells.
The Knicks had already been credited with bringing New Yorkers together. Trump and Mayor Zohran Mamdani cheered for the same side in Game 3. Taylor Swift, sitting in a packed celebrity row, shared the same euphoria being projected on brownstones across NYC’s five boroughs and beamed from its street-corner Wi-Fi terminals. For the time being, the fighting between the Knicks and the city over watch parties has been forgotten.
“If there’s one thing Knicks fans don’t need permission for, it’s showing up for our team wherever we may be,” Mamdani posted on X earlier in the day after a watch party outside the team’s venue was scrapped.
When the final buzzer sounded, and the players, celebrities, crowds and city streets seemingly rose in unison, palms aloft, “You could just feel the abundance of joy,” Towns said.
By 2 a.m., with ears still ringing, fans were finally making their way home. It was pitch black on Gotham’s quieter streets. It felt more like dawn.
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