# Paraguay opens criminal probe after US-backed review finds China-linked hackers in state systems > Paraguay's Fiscalía launched a criminal investigation on July 14 after the country's ICT ministry and the US Embassy jointly announced that multiple Chinese government-linked cyber threat actors, including the Flax Typhoon group identified in a 2024 review, had infiltrated Paraguayan state networks; China's Foreign Ministry denied the allegations **Meta:** type: event · date: 2026-07-14 · heads: What They're Not Saying, The Quiet Shift · 5 takes · 5 lenses · 2 regions ## Summary [Paraguay](/en/entity/paraguay)'s Fiscalía on July 14 opened a criminal investigation into alleged unlawful access to [Paraguayan](/en/entity/paraguay) state computer systems, after the country's ICT ministry (MITIC) and [US](/en/entity/united-states) Embassy jointly announced that multiple [Chinese](/en/entity/china) government-linked cyber threat actors had infiltrated government networks. TeleSemana reported the disclosure also referenced a 2024 review that identified the Flax Typhoon group, a China-based espionage actor, inside Paraguayan systems. Fiscal General Emiliano Rolón Fernández designated specialist prosecutor Irma Llano to lead the probe. [China](/en/entity/china)'s Foreign Ministry denied all allegations: spokesman Lin Jian said Washington uses cybersecurity as a political pretext to discredit Beijing and urged Latin American leaders not to become "instruments of US geopolitics." ## The split Paraguayan outlets (ABC Color, El Poder) covered the domestic legal procedure, focusing on who filed the complaint and who was appointed to investigate. Argentine and regional media (Infobae, TeleSemana) placed the story in the larger frame of US-China tech rivalry: TeleSemana highlighted the timing alongside Paraguay's 5G spectrum auctions, which already exclude vendors from countries with which Paraguay has no diplomatic relations. China's denial followed a pattern of dismissing similar attributions across Latin America. The cybersecurity director at MITIC told a local broadcaster that investigators have elements sufficient to attribute the intrusion to Chinese-affiliated actors. ## By the numbers - 2 joint reviews: a 2024 bilateral review identifying Flax Typhoon, and a more recent review identifying additional actors - 1 specialist prosecutor, Irma Llano, designated to lead the criminal case - 2026-2030, the period of Paraguay's 5G spectrum expansion with Chinese vendor restrictions in place ## Why it matters [Paraguay](/en/entity/paraguay) maintains formal diplomatic relations with [Taiwan](/en/entity/taiwan) rather than the People's Republic of [China](/en/entity/china), a position that gives the US-Paraguay security relationship unusual depth in the region. A confirmed intrusion into Paraguayan state networks by China-linked actors would add a new data point to a pattern of operations in Latin American countries that align with Taiwan or the US. The criminal investigation, if it produces a public record, could also become a template for how smaller states handle Chinese espionage attributions without direct military leverage. ## What to watch - Whether Paraguay's Fiscalía issues formal charges or releases technical evidence - China's bilateral response: any diplomatic protests or retaliatory measures from Beijing - Whether other Latin American countries facing similar 5G restriction pressure see parallel cyber disclosures ## Regional takes (batched by bias / lens) ### Leading Argentine news site; reported the appointment of specialist prosecutor Irma Llano to lead the investigation, filed by the ICT minister after the joint US-Paraguay announcement - **Infobae** (Argentina, es) — Infobae reported that Paraguay's Fiscalía opened a criminal case for alleged unlawful access to state computer systems, with Fiscal General Emiliano Rolón Fernández designating specialist prosecutor Irma Llano, following a formal complaint by the Ministry of ICT. > "El fiscal general Emiliano Rolón Fernández designó a la agente especializada en delitos informáticos Irma Llano para conducir las pesquisas iniciadas tras la denuncia formal del Ministerio de Tecnologías de la Información y Comunicación." Source: https://www.infobae.com/america/america-latina/2026/07/14/la-fiscalia-de-paraguay-abrio-una-causa-penal-por-los-ciberataques-atribuidos-a-china-contra-sistemas-del-estado/ ### Latin American telecoms trade publication; provided the deepest context, including China's Flax Typhoon group, the 5G spectrum background, and China Foreign Ministry spokesman Lin Jian's rebuttal urging Latin American leaders not to become instruments of US geopolitics - **TeleSemana** (Argentina, es) — TeleSemana reported the MITIC-US Embassy joint announcement identified 'multiple Chinese government-linked threat actors' in Paraguayan state systems, linking the incident to Paraguay's 5G spectrum auctions that already exclude Chinese equipment vendors. China's Foreign Ministry denied the allegations, with spokesman Lin Jian calling the US a user of cybersecurity as political pretext and urging Latin American leaders not to become US geopolitics instruments. > "El Ministerio de Tecnologías de la Información y Comunicación de Paraguay, en colaboración con el Gobierno de los Estados Unidos, reveló la infiltración en redes estatales de múltiples actores de ciberespionaje vinculados al gobierno chino." Source: https://www.telesemana.com/blog/2026/07/14/paraguay-denuncia-ciberespionaje-chino-en-plena-expansion-de-su-red-5g-pero-el-gobierno-asiatico-niega-las-acusaciones/ ### Paraguay's main daily; confirmed the Fiscalía opened the case after a joint MITIC-US Embassy complaint pointing to China, and noted the investigation was ordered with all necessary means - **ABC Color** (Paraguay, es) — ABC Color, Paraguay's main daily, confirmed Fiscal General Emiliano Rolón ordered the investigation into alleged unlawful access to state systems, following a complaint filed jointly by MITIC and the US Embassy and pointing to China. > "El fiscal general de la República, Emiliano Rolón, ordenó la apertura de una investigación por los supuestos hechos de acceso indebido a sistemas informáticos del Estado a raíz de una denuncia hecha por MITIC en conjunto con la Embajada de Estados Unidos que apunta a China." Source: https://www.abc.com.py/nacionales/2026/07/14/fiscalia-investiga-denuncia-de-mitic-sobre-supuesto-ciberespionaje-chino/ ### Paraguayan outlet; added the name of the ICT minister who filed the complaint and the instruction to employ all necessary investigative means - **El Poder** (Paraguay, es) — El Poder reported the criminal investigation was opened following a complaint by ICT Minister Gustavo Villate, with the fiscal designating specialist prosecutor Irma Llano and ordering all necessary means to be used in the probe. > "La Fiscalía abrió una investigación penal tras la denuncia presentada por el ministro de Tecnologías de la Información y Comunicación (Mitic), Gustavo Villate, por supuesto acceso indebido a sistemas informáticos del Estado." Source: https://www.elpoder.com.py/politica/2026/07/14/fiscalia-abre-investigacion-por-presuntos-ciberataques-de-china-a-sistemas-informaticos-del-estado/ ### unlabelled - **ABC Color** (Paraguay, es) — Source: https://www.abc.com.py/ciencia/2026/07/14/fiscalia-de-paraguay-abre-causa-penal-tras-denuncias-contra-china-por-ciberespionaje/ ## Across the graph - Entities: Paraguay, China, United States --- Canonical: https://rbtfl.xyz/en/n/paraguay-china-cyberspy-jul14