Chinese hackers stole tens of thousands of emails from U.S. State Department accounts after breaching Microsoft's cloud-based Exchange email platform in May.

https://www.bleepingcomputer.com/news/security/microsoft-breach-led-to-theft-of-60-000-us-state-dept-emails/

Microsoft breach led to theft of 60,000 US State Dept emails

Chinese hackers stole tens of thousands of emails from U.S. State Department accounts after breaching Microsoft's cloud-based Exchange email platform in May.

BleepingComputer

@BleepingComputer "We need to harden our defenses against these types of cyberattacks and intrusions in the future, and we need to take a hard look at the federal government's reliance on a single vendor as a potential weak point," Senator Eric Schmitt said in a statement.

Then you shouldn't use cloud providers for identity management. Keep your systems isolated on premise.