The U.S. Treasury Department has sanctioned a Russian company, Operation Zero, and its principals for allegedly purchasing stolen cyber tools for millions in cryptocurrency and reselling them. These tools were originally developed for the U.S. government and its allies.
According to the Treasury, the sanctioned individuals, including Sergey Zelenyuk, acquired the technologies. These cyber tools were reportedly stolen by Australian national Peter Williams, a former employee of the defense contractor that produced the national-security focused software. Williams had previously pleaded guilty to selling trade secrets.
Secretary of the Treasury Scott Bessent stated, "Treasury will continue to work alongside the rest of the Trump Administration to protect sensitive American intellectual property and safeguard our national security." This action marks the first sanctions under the Protecting American Intellectual Property Act.
The sanctions, issued by the Office of Foreign Assets Control, prohibit U.S. persons from engaging in any business dealings with the sanctioned individuals or entities that conduct business with them. The Treasury reported that Operation Zero sought hackers to support its operations and build relationships with foreign intelligence agencies via social media, offering the stolen tools to exploit software vulnerabilities.
While the Treasury acknowledged cryptocurrency was used in these transactions, specific addresses were not detailed for blacklisting.